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Steep upward price trend continues for
ordinary recovered paper grades in Germany

Baled old corrugated containers (OCC)
Recovered paper demand remains very high.
16.03.2021 − 

Prices for ordinary recovered paper grades continue to rise on the German market. Following the very considerable upticks in January and February, prices in March are said to be rising even more sharply. There has been little change to the situation on the market: Collection volumes are relatively low and demand remains very high – especially from the packaging paper sector. Consequently, the mark-ups in March are reported to be as hefty as €40/t or even higher.

At the moment, the supply situation has improved again somewhat after weak arisings in February due to the wintry weather, respondents told EUWID. Yet there is still not nearly enough recovered paper on the market to meet the enormous demand from the paper mills, they add. Many inventories are said to be empty and waste management companies and merchants can often only partially fulfil their supply obligations.

At the same time, paper mills are apparently trying to secure sufficiently large volumes to carry them through the Easter holidays. A few players therefore suspect that psychological effects are also driving the price surge. However, since production in all segments is running at full tilt, the shortage of material is nevertheless very substantial. Fierce battles are currently being fought over volumes, EUWID was told.

High prices for deinking grades intensify pressure in graphic sector

The availability of deinking grades is especially problematic at the moment, the market survey found. Volumes are now almost non-existent, so mills are under extreme pressure when it comes to procurement, say several market participants. Prices here, too, are rising accordingly.

While players in the packaging segment have been relatively successful at passing on the rising recovered paper procurement costs to their customers in the form of higher new paper prices, producers in the graphic sector are facing growing margin pressure. Further price increases for deinking grades were therefore unlikely and reactions by the mills as well as idling of certain plants would be unavoidable, respondents predicted.

The full report on the German recovered paper market appears in the print and e-paper issues of EUWID Recycling & Waste Management (06/2021) out on 24 March. Online subscribers can access the report immediately here:

Recovered paper Germany

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