The last four weeks have seen generally stable prices for both domestically and internationally traded recovered fibre.
This is with the exception of OCC 1.05 in both the domestic and export markets which has increased by about £5 on both the top and bottom ends.
Mixed paper has seen increased demand from the export market and has gone up on the top and bottom end by an average of £7.50.
Multigrade has also seen an uptick of £8 on the high end of export due to increased demand from Europe, particularly Germany. It’s bottom end has gone down £5.
News and pams for export has also gone up by £5.
Sector sources have warned that while prices have been increasing, which is standard for this time of year, they are not reaching the highs previously recorded and may now be reaching their peak.
While European demand is increasing, this may be attributed to many mills (including within the UK) front-loading production ahead of incoming energy price increases due to the war in the Middle East. This demand may not last as fuel prices surge further.
India has also shown some increased demand for UK recovered fibre, although reports of this have been spotty across the board.
The sector has also said that generation continues to be very low overall amidst the increasing demand.
Overall, one industry expert noted that the markets continue to be resilient despite turbulent conditions.
The PRN price is also providing support to the situation, which is currently trending at over £7 per tonne.
Looking ahead
It is likely that the domestic multigrade and SOW grades will see increases going into June if the recently opened Essity Prudhoe mill starts to increase its buying.
The OCC price may see some minor increases but many in the sector have speculated that it may now have peaked.
European demand is likely to wane over the summer months as mills take further downtime.
The major factors will be the price of energy and the ongoing effects of the war in the Middle East, many of which have not yet been fully felt.
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