British wastepaper markets steady overall in October; OCC prices up slightly due to rise in exports to China but that could be short-lived; colored letter and multigrade prices slip in some tissue mill transactions despite reduced supply

LOS ANGELES , October 23, 2012 () –

Except for old corrugated containers (OCC) and some office paper grades consumed by tissue mills, recovered paper markets were relatively unchanged in the U.K. in October, reported EUWID-Paper on Oct. 23.

Under pressure from tissue mills, prices for colored letters (2.06) and multi-grade papers have dropped in some transactions in recent weeks. Prices for these grades have plummeted since April, despite reduced supply due to falling demand for printing and writing papers.

An uptick in exports of OCC to China helped slightly boost prices for grade 1.05. Whether this trend will continue is debatable. Some believe Chinese orders will disappear by the end of this month, while others believe prices could rise again in November, EUWID-Paper reported.

With the expectation that retailers will see increased business ahead of the Christmas holidays, U.K. exports are likely to wane. Chinese mills also need to renew their import licenses by year-end, a process that usually results in a drop in U.K. exports.

With the U.K. market currently defined by a glut of recovered paper inventories, any price trend upward is expected to be short-lived, according to a few sources, reported EUWID-Paper.

The primary source of this article is EUWID-Paper, Gernsbach, Germany, on Oct. 23, 2012.

 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.