Prices for ordinary recovered papers in the UK on the rise in May

17 May 2017

British prices for ordinary recovered paper grades have staged a marked recovery since the middle of April and have been climbing week after week since then.

However, experts felt that there could be no talk of the situation "returning to normal." This was primarily because market players were waiting to see how the situation panned out the all-important Chinese export market.

Mixed paper (1.02) shipments to China have improved markedly compared to April, but are still much lower than normal. The UK's domestic paper mills are apparently not buying much mixed paper on the free market either. Instead, a lot of material was headed to mainland Europe, sources said.

The recovery in OCC (1.05) prices that also started in late April was much more pronounced. This revival is primarily connected to stricter inspections of mixed paper exports to China that do not apply to OCC, experts said. They believe that Chinese paper mills are buying more OCC and mixed newspapers and magazines (1.08/1.09) to meet their need for fibre.