Prices for ordinary recovered paper grades have edged higher in Italy echoing developments on the Far East export market where prices went up quite significantly in January.
Export activity was very brisk on the Italian recovered paper market in January. EUWID respondents were experiencing strong demand from China for mixed paper and board (1.02) and old corrugated containers (1.05). Since prices had reportedly been very attractive, too, the Chinese market was the preferred sales market for Italian merchants in January. "Anybody who can export is exporting," one insider remarked.
Italian merchants were able to institute higher prices for ordinary recovered paper grades on the domestic market, as well. Quite a few market players believed that the price hike would not have taken effect without the jump in export prices. Market conditions would have tended to suggest stable prices, they said. Recycled corrugated case material manufacturers in Italy reportedly started off the new year with their warehouse nicely stocked with recovered paper. Therefore their need for recovered paper was not urgent in the first half of the month, sources said.