Collapse in Asian demand for Italian recovered paper drives up supply

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27.06.2019 − 

The skies are becoming increasingly overcast on Italy’s recovered paper market. Prices continue to fall, and merchants are looking at developments with growing concern. Prices for ordinary recovered paper grades were now so low that companies were only just breaking even and sorting would no longer make financial sense soon, several of them complained. Recovered paper suppliers told EUWID that they needed to revise their contracts with recovered paper generators.

In these circumstances, it was not tenable for merchants to pay for recovered paper, one market player said, echoing comments made not least by the Italian paper recyclers’ association Unirima, which drew attention to the challenging situation facing the industry in an official statement.

Market players explained that too much material was available on the Italian market and recovered paper suppliers’ inventory levels were slowly rising because of the lack of export opportunities – demand from Asia has apparently tumbled. Demand from Italian paper manufacturers was described as stable, with their inventories still characterised as average or high. Yet, they sought price cuts in June because of the supply situation and in the light of declining recovered paper prices for exports to Asia.

The full report on the Italian recovered paper market appears in EUWID Recycling & Waste Management 13/2019 published on 26 June. Our online subscribers can access the full report here.

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