Russian embargo having impact on recovered paper market in Poland

Wednesday, Feb 10, 2016

The Russian Government banned exporting recovered paper for four months with effect from 18 December 2015 and this step has been affecting the Polish market since January.

Ukrainian paper mills, which were most heavily affected by the embargo as they were by far the biggest importer of Russian recovered paper, are looking more for alternative sources in Eastern Europe, above all in Poland, merchants told EUWID. Since the embargo went into effect, significant amounts of recovered paper have now left the country for Ukraine, especially from the south and east of Poland.

Insiders said that Ukrainian buyers were generally paying in advance, could offer or even exceed conventional market prices and had the same high quality requirements as Polish paper mills. Local buyers are facing real competition, with Polish prices slowly being pushed upward. Up until now, however, these increased exports have yet to have an impact on prices paid by paper mills in Poland.

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