Few waste paper merchants are prepared yet to say that a mini-boom lies ahead, but views range from being “pleasantly surprised” through to “price rise continuing until April at least”.
The January uplift in the export prices for the bulk grades, mixed paper and used cardboard, and mid-grades used for tissue and printing papers has been broadly welcomed.
One merchant remarked: “After the rise in inland and export freight costs in the last few months of 2007, we are pleasantly surprised at the current market. One or two of the overseas mills have said they are prepared to accept some of the increased costs and we have absorbed some ourselves. The weaker dollar has helped remedy the situation so at least the price is steadying in cost terms.”
Prices this month have remained steady in the domestic market for the three main recycled grades, mixed paper, used cardboard and newspapers and magazines with the only significant changes seen in mid grades such as coloured letter, where at least one mill has put the price it pays up by £5 a tonne.
Export
However, the export market is now seeing strong demand for mixed paper, with prices up by at least £5 a tonne to about £56-61, while the board price – old KLS – has risen similarly. Forward bookings for February are already taking place at higher rates with the usual slow down in Chinese activity during Chinese New Year appearing to have little impact ahead of the holiday period next month.
Chinese mills are said to be short of waste paper, partly because there is a reduction in material coming out of the American market because of a lack of shipping containers.
And, one merchant said, there is growing competition among the Chinese mills themselves for overseas material which sees them becoming more competitive in the UK.
He added: “The challenge for the buyers is that there is not a great increase in the amount of used cardboard available. While household collections generates a soft mixed material, newspapers and grey board, the tonnage of used cardboard in the market is not increasing fast as much of it is being collected already.”
In contrast to the export market, UK mills which use cardboard as a feedstock are said to be well-supplied and this is also the time of year where production order books are weaker, in the wake of a hectic pre-Christmas period.
• From January 2008 letsrecycle.com is including a Multigrade price within its pricing section for recovered paper, commonly known as waste paper. This grade is now often traded although we continue to show associated grades which are also still found widely in the marketplace. Prices have also been re-ordered to aid clarity in terms of a league order of values. Multigrade typically consists of material such as coloured letter, tear white and coloured best pams. It is usually used to refer to material which is better quality than sorted office waste although the terminology can differ between mills and merchants.
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