RCP prices in France still in decline amidst lacklustre demand

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29.07.2020 − 

Demand from Asia was a little brisker in July, bringing some relief for recovered paper merchants doing business in France. However, this revival was insufficient to prevent another sharp decline in prices, especially those for ordinary recovered paper grades, given slow demand within France. In an unusual development for this time of year, deinking grades also continued to trend lower. Quite a few prices for high grades stabilised.

Merchants and paper manufacturers complained most about the slow demand on the French domestic market in July. Packaging paper and cartonboard manufacturers generally have thin order books. Just a few of them experienced a minor recovery compared with June. Machines were idled for a couple of days or a week here and there, and some maintenance shutdowns were brought forward. Insiders viewed this as a sign that business could be better.

Recovered paper supply has also gradually improved since the lockdown ended, although several industrial sectors, such as the automotive and aviation industries, were slow to get going again, and arisings were lower here. As a result, collection volumes from industry had yet to return to pre-lockdown levels in July. However, when all was said and done, recovered paper still supply far exceeded demand in July, contacts told EUWID

While a few buyers think that an additional price cut is possible, other suppliers point out that the market situation is different than it was before the onset of the pandemic. Recovered paper is not as readily available as it was at the start of the year and might contract a little in August. Moreover, they are hoping for momentum from export business with Asia. For their part, buyers stress that demand has been sluggish of late, and several paper mills are set to take downtime in August.

The full report on the recovered paper market in France will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (16/2020) out on 5 August. Online subscribers can access the report immediately here:

Recovered paper France

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