Oversupply sends recovered paper prices in Italy tumbling

6 March 2019

Sentiment is gloomy on the Italian recovered paper market. Suppliers are troubled by the uncertainty regarding exports to China. Larger volumes are remaining within Italy and this is putting pressure on the prices for various grades.

Italian prices for the ordinary recovered paper grades slipped in February. There is slightly less pressure on mixed paper (1.02) since there are fewer volumes of this grade available on the free market. By contrast, supplies of old corrugated containers (1.05) and supermarket corrugated paper and board (1.04) were described as plentiful.

One reason for this is that producers of corrugated case material have seen their order backlogs weaken considerably in recent months and prices on this market are declining. Moreover, exports to China have become almost impossible and volumes of recovered paper are therefore piling up in Italy.

The weakness of the overseas export markets is also having an effect on some deinking grades. The price of unsold magazines (1.06) reportedly fell again in February.


Source: euwid-paper.com