Waste paper prices fall at the end of the year
News General news
As expected, prices for department stores' waste paper and mixed paper remained stable on the German waste paper market in November. However, prices for bulk grades will fall in December. Market participants generally estimate the drop at between €5 and €10 per tonne. Interviewees cite weak demand from domestic paper mills and declining conditions for long-distance exports as the reasons for this. Downtime in the German paper industry was more extensive this year than in previous years. As a result, the outflow of waste paper also stalled.
In view of the fact that collection volumes remain very low at the same time, waste disposal companies' warehouses are said to be empty at the moment. The situation is far less dramatic than last year, they say. Back then, the collection volumes were much higher. When demand from industry collapsed, some waste paper deliveries were even sent for incineration.
However, some people involved in the dialogue attribute the current price decline more to weaker demand from exports. Prices here are said to have fallen by €10 to €15 recently.
Market participants are looking ahead to January with big question marks. As the number and scope of plant shutdowns is not expected to peak until the turn of the year, demand from factories could then fall noticeably. At the same time, collection volumes are traditionally particularly high at the beginning of the year. Disposal companies could therefore have greater difficulties in selling in January and the pressure on waste paper prices could continue as a result.
