Some stability is returning to the German recovered paper market, at least for the ordinary grades. Prices rose slightly in February, in particular for supermarket paper and board, but also for mixed paper. In March, prices are again expected to edge higher, mainly due to the low recovered paper arisings, say market participants. Exports and, in some cases, improved purchasing from the domestic paper industry are also helping to stabilise prices.
In March, most respondents continued to report very low recovered paper collection volumes. Weak consumer spending is now very apparent in municipal household waste collections and there are also lower volumes coming from industrial and commercial customers, EUWID was told. In the east of the country in particular, there had been a “massive” drop in volumes, which market players estimate could be as large as 25 per cent. Overall, the volume decline is usually estimated at around 15 per cent.
Moreover, recovered paper also continues to leave Germany for the Far East export market. The volumes involved in these shipments had tapered off somewhat recently and prices weakened somewhat, EUWID was told. But overall, export volumes remain at a “good level.” And for deliveries to Vietnam and Thailand, buyers are actually now offering slightly higher prices again, said one merchant. The current very low freight costs are also having an overall positive effect on export activity....
