Market Report
In our monthly market report, we explore paper recycling industry conditions December 2024 and discuss the prospects for the future.
In the last quarter of 2024, the packaging sector in Europe has continued to slow down. The volumes for packaging to the Far East continued at current rates but this is slowing down towards the end of the month for the Chinese New Year.
Pricing in December for the Far East fell by around £5 per tonne, as the Far East buyers acknowledge the fall in the European price.
The de-ink market is now following the market with reductions in pricing of between £5 & £10 per tonne. The tissue sector demand fell and pricing reduced because of higher availability of material that would normally have been consumed in the packaging industry. For pulp substitutes pricing has also reduced.
December will be a quiet month with many mills across Europe, in all sectors, taking the opportunity to take down-time over the Christmas period to reduce stocks. There is however, optimism that in the new year orders will improve. However, the economic and political situations across Europe are unstable and this could change quickly.
Packaging
Packaging mills across Europe, especially Germany, continue to reduce pricing – OCC 1.04.00 & 1.05.00 prices have reduced by €10 per tonne. The reasons remain as reported last month. In other parts of Europe (France, Netherlands, Spain & the UK), mills have reduced pricing by around €5.00 per tonne.
Mixed Papers 1.01.00 & 1.02.00, the price has also reduced by between €5.00 to €10.00 per tonne.
4.02.00 & 4.03.00 grades, pricing has also come under the same pressure as OCC & price reductions have followed the same pressures as confirmed in OCC.
As reported above, Sales to the Far East remained stable, pricing reduced by between £5-£10 per tonne, and it is expected that pricing and demand will reduce further in the coming weeks, coinciding with the holiday period & the Chinese New Year.
Newsprint & Graphic Papers
Demand for Newsprint and Graphic papers has remained stable in Europe and in balance as many mills stock up for the Christmas period. However, pricing for News & Pams (N&P), OI Pams and OI News did reduce by €10 per tonne, as the mills continue to look to recoup high input costs incurred throughout 2024.
Tissues
Demand and pricing for the tissue grades (Multigrade & SOW) have reduced again. This is directly attributable to the dire situation of the packaging groups who use these grades in the production of white top board across Europe. With the fall in production & high stocks in the mills, it has meant that a bigger volume of these grades is now widely available across Europe and therefore the price has decreased again this month by £10 to £15 per tonne.
Pulp Substitutes
Pulp pricing will follow the Tissue sector, as packaging groups use less of this material. Prices are down €10.00 per tonne.
Pricing prediction
As the year draws to a close, it’s true to say that the industry is facing many challenges, particularly at the beginning of 2025. The situation in Ukraine and the Middle East continues to create uncertainty in our economy but we hope, with the support of the new US President in office, that we are heading towards a more settled future. As we look forward to the new year, we hope to see the industry get the lift that it needs to remove obstacles, reduce costs and boost the economy.
In the meantime, all that remains for us to say is – merry Christmas and a happy new year.