Rising demand for recovered paper in Poland amid shrinking supply

Government-ordered shutdowns have tightened
the availability of recovered paper in Poland
08.04.2020 − 

The Polish recovered paper market experienced an abrupt reversal in mid-March. Many buyers are nervous now about whether their supplies can be guaranteed at all in the coming weeks. Shortages are a possibility, market insiders told EUWID in early April. Poland’s paper mills are reacting with stronger demand for recovered paper and are attempting to build up inventories as much as they can.

The demand from German buyers for supermarket corrugated paper and board from Poland is also very high, merchants say. Many Polish sellers had strengthened their ties to German customers last year. As a result, prices are rising in April. In most cases, however, players believe that the upward trend will be brief. Some industry experts expect the market to calm down and stabilise again somewhat as early as May or June.

As recently as February, collection and recycling operations in Poland had overflowing inventories. In many cases, recovered paper was no longer being accepted or picked up because there was no free storage capacity. Paper factories had the power to dictate the terms of sale, and prices had dipped to an extremely low level by February. Sellers were increasingly desperate to get rid of material in any way possible and price was no longer an issue. In March, the situation broadly stabilised, and there were a few initial price hikes starting from the middle of the month.

The full report on the recovered paper market in Poland will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (8/2020) out on 16 April.

Online subscribers can access the report immediately here: Recovered Paper Poland

Tags of this news:

previous − Steel scrap arisings plummet in Germany as economy grinds to a halt

German waste textiles industry struggles in Covid-19 crisis  − next