letsrecycle.com

Recovered paper prices set to come under pressure in first quarter of New Year

The waste paper market looks set for a bumpy start to the new year with signs from the Far East and continental Europe that prices for some grades could fall sharply in the first quarter of 2001. Opinions across the sector ranged this week from “the market is slowing up dramatically both in the UK and for exports” through to “newsprint mills in the UK are full”.

On the board side there is a strong belief that home mills are reluctant to drop the prices they pay for material because they have fought hard to get corrugated and board prices up for finished products. Any price reductions for Old KLS could lead to retailers and others demanding cuts in the price of finished goods.
However, because of the falling price overseas, UK mills are expected to drop their prices in January. The price could be influenced though by packaging waste recovery notes. If the price of these rises to around the 30 mark, some of the extra funds could be used to help support domestic prices for Old KLS.

The board situation is also influenced by rising stocks in Germany plus the fact that the US is consuming less and is exporting more material to the Far East.

Office grades however, are said to be continuing to move quite well although tissue mills are still keen on price reductions for their supplies.

letsrecycle.com will be updating its prices for paper shortly and will also be providing price information for domestic mill supplies as a new service.

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