While some variation in price can be found, the market has moved down to around 60 per tonne, in part due to the falling value of Packaging Waste Recovery Notes (PRNs).
The mills are also safeguarding themselves against the regular downturn in business that usually comes in January and February after a hectic spell in the run up to Christmas.
In the past two years orders turned out stronger for finished product than expected which has kept the market strong in the first part of the year. However, there appears to be more negative sentiment in the market than positive at present. PRNs are also set to drag the market down in the New Year as it is widely expected that there will be no price increase – and could be a decrease – because the packaging waste recovery targets for 2002 are the same as 2003.
Tissue pressure
There is also downward pressure from the tissue mills and there is concern within the recovered paper sector that mills are unfairly trying to drive prices down for woodfree tissue grades which would have a knock on effect for grades such as sorted office waste.
The downward pressure comes as the government's Strategy Unit has suggested higher paper recycling targets for office paper and tissue products used by government departments.
It recommends that the government should set itself green procurement targets of
- White copier paper – recycled fibre should comprise a minimum of 35% of the weight of paper procured in any one year by 2003/4, increasing to a minimum of 75% by 2006/7
- Tissue – (eg hygiene products) to be made from 100% recycled material from 2003/4
- Packaging – to consist of 100% recycled materials from 2003/4.
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