Logistics problems causing headaches on British recovered paper market

Logistical problems have overshadowed
otherwise favourable market conditions.
26.01.2021 − 

Supply and demand alike are good on the British recovered paper market in January, with prices for mixed paper and old corrugated containers (OCC) pointing higher towards the middle of the month. Current trading conditions should have meant that market players were pleased, but British recovered paper sellers are battling major problems with transports to the European Union at the moment.

As usual, collection volumes have been good in the UK in January, although many experts interviewed by EUWID said that the trajectory was flatter than normal due to pandemic-related restrictions. At the same time, arisings in the second half of the month did not generally decline as much as in years past.

End of Brexit transition ushers in logistical problems

Demand from continental Europe and Asia is good. That being said, EUWID sources are encountering significant problems with shipments to the EU, primarily due to customs difficulties related to the end of the Brexit transition period on 31 December 2020. Businesses that have mainly served buyers in the EU to date find themselves facing a big problem. “We need a solution quickly because we cannot store recovered paper for long in the winter,” one expert pointed out. 

A few big recovered paper suppliers had already seen these problems looming on the horizon in 2020 and had switched to serving Asian markets at an early stage.

You can read the full market report in the print and e-paper editions of EUWID Recycling & Waste Management 02/2021, out 27 January. Premium subscribers can access the market report right away:

Recovered paper UK



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