|  

Exports give a short-lived boost to OCC prices in the UK


representative image
26.08.2020 − 

Recovered paper was becoming more readily available on the British market in August as more and more industrial and retail companies were resuming activity or business otherwise picked up again and workers went back to the office. Nevertheless, collection volumes in the previous months had been down and volumes collected in the UK between January and June were off by around 5 per cent compared with the same stretch last year. 

Tighter supply was coinciding with a short-lived spike in demand on export markets for old corrugated containers (OCC; 1.05) and, to a lesser degree, for newspapers (2.01) and sorted office paper (2.05). Prices pointed sharply higher in August as a result. Chinese buyers have embarked on what is likely their last buying tour in Europe and want to exhaust their quotas as quickly as possible.

These buyers are under enormous time pressure as shippers like Maersk, Hapag Lloyd and MSC have announced that they would not accept any more recovered paper for shipment to China after 1 September. Despite new regulation that will make imports of recovered paper and other scrap materials illegal at the start of next year, there are still a few shippers still accepting recovered paper for transport to China.

The full report on the recovered paper market in the UK will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (18/2020) out on 2 September. Online subscribers can access the report immediately here:

Recovered paper UK

Tags of this news:

previous − Effects of crisis linger amid new hope on German PET bottle recycling market

Brisk export trade sends steel scrap prices higher in Germany  − next