Recovered paper prices continue to rise at the beginning of the year

Already in December, prices for bulk grades had increased significantly due to very strong demand from the paper industry and contrary to the other seasonal trend. Due to the full order books, many mills produced through the holidays and secured themselves with corresponding quantities. However, the logistics problems feared by some players are said to have failed to materialise over the turn of the year.

The volume at the beginning of the year is predominantly assessed as good to very good in the market. The effects of the pandemic lockdown were only felt in exceptional cases and the volumes from industry and commerce were mostly stable, it was said. The volume from household collection was also traditionally high at the turn of the year, with the share of packaging continuing to rise here due to the growing importance of online trade.

For the second half of the month, however, some market participants are already expecting noticeable declines in volumes, while others are not expecting the seasonal dip in volumes until February. Uncertainty about further tightening of the lockdown is also causing question marks over the supply of volumes.

Even though there was still enough recovered paper on the market at the beginning of the month and thus initially there was actually no reason for price changes, the growing uncertainty is now leading to further increases. In view of the good order situation in the packaging sector, shortage of recovered paper stocks is currently the worst thing that can happen to the mills, several market participants emphasised. Buyers would therefore also pay higher prices to secure volume supplies.