The BIR report for the US notes “sluggish” mill production in all sectors with a less active export market. Mid-February is seen as the period when purchasers started to pull out of the market for board-making grades, causing prices to decrease.
On the continent the report for the Netherlands says that the outlook is uncertain and further small price reductions on the domestic market cannot be ruled out. “Currently, the export situation is still weak, with the market in Indonesia – a traditional outlet – remaining fragile. Prices are around 10% below domestic levels.”
The reports from France and Germany contain some optimism, while the Spanish report says that “while the market could be better”, there is less pessimism in evidence than at the end of 2000.”
The Spanish view arises partly because recovery levels were lower than expected and in some cases demand exceeds supply.
In Germany, the BIR says that demand for lower grades from South East Asia has improved. Trading volume in Europe is described as at a normal level during March with prices failure stable. “Sorted graphic paper for deinking is in considerable demand, but office papers are in over-supply resulting in declining prices.”
The French view is that the market for OCC (or old KLS – cardboard) and mixed papers was stable in March with good home demand. However, some weaknesses are forecast in the bulk grades.
The UK report notes that there have been successive price reductions for all grades, bringing the UK into line with most continental levels. However, export orders from the Far East increased in March.
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