Some merchants say that charges will become important as a revenue source again when material is collected although the market has not necessarily reached this level yet. Others have already instigated charges and will simply give less of a discount for the value of the material collected.
Old KLS – which is also known as OCC or old corrugated containers – delivered to merchant yards has also seen price falls and is now between zero to 15.
The outlook for prices, which have also seen falls in the home mill price for mixed paper to about 10-15 per tonne, is uncertain.
UK mills are aware that any further cuts in prices for KLS could hit supplies and see material diverted into landfill or exported. While there is some speculation that a further small fall in the price could come within the next two months other industry experts say that the recent market downturn could be levelling off with a slightly increased level of inquiry for finished product.
Much could depend on the view of independent merchants who may seize the opportunity to export material because most home prices can be achieved on the export market and by diverting the material abroad pressure is put on the domestic mills.
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