Following the upturn in demand for recovered fibre in April, we can confirm again further increases from European and domestic paper mills. This increase in demand from Europe has led to increases in price within all markets as the far east market has followed price to ensure that their purchase volumes remain at existing levels.
It should be noted that in all paper sectors price has increased as they all vi for limited availability of volumes and we are now seeing the different paper sectors buying grades which they have not traditionally used, at the expense of the sector where off take would have traditionally been.
Newsprint & Graphic Papers
The price of News & Pams (N&P), OI Pams and OI News all increased, demand is high and availability in some grades low, we have seen price increases of around £15 to £20 per tonne.
Packaging
Pricing across the board up £15 to £20 per tonne.
Packaging mills across Europe & the UK are short of fibre and there are concerns around supply as there is a high number of bank holidays and reduced deliveries. Added as confirmed, far east buyers are looking to maintain volumes so effectively matching pricing being offered by their European counterparts.
The folding box board sector has also moved this month, with similar price increases due to reduced supplies.
Tissues
Pricing increased £10 to £15 per tonne as buyers acknowledge that there is a lack of fibre available.
Pulp Substitutes
Pulp pricing, there is smaller movement upwards of £10 per tonne.
Pricing prediction
As confirmed in April the spring will be a good indicator for 2024, we further believe that June is going to be the point that may determine the paper industries requirements for 2024. This is based on:
- Demand requirements by paper mills for Europe have increased due to improved pricing, and the paper groups are negotiating with their customer base. However, it remains unclear how much of the requested increase the paper groups have achieved.
- Availability of recovered paper from Europe is low and has increased recovered paper pricing, as mills face low stock levels.
Clearly if the increase in finished goods is not achieved by the paper groups in Europe, this will have an adverse effect on demand and we could quickly see a reversal in the demand and pricing, alternatively if the paper groups achieve their price increases, then we can expect continued strong demand.