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Softened demand of finished paper leading to downfall in recovered paper (RCP) prices

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RCP prices registering downfall due to weak demand of finished paper


Softened demand of finished paper leading to downfall in recovered paper (RCP) prices

-Finish paper prices in all grades except duplex board have come down to approx Rs 5/ per kg within last 2 week

-Local OCC Corrugated waste in western part of Uttar Pradesh (INDIA) is reaching to paper mills at Rs. 22.50 to 23 per KG approx.
- The prices for the imported OCC grades are expected to be dropped further by $ 20 to $ 50 PMT.
- Import prices in Taiwan and Southeast Asia (U.S. OCC prices to SE Asia dropped by another $5-$15/tonne over the past two weeks)

Delhi | 3rd December 2021 | The Pulp and Paper Times:

After the festival season is over in India, the demand for finished paper is registering a decline leading to a downfall in the waste paper (RCP) prices drastically. “Multiple factors such as the advent of winter season in India, new variant of Coronavirus and weak demand of finished paper due to closing of festival season are impacting the imported as well as domestic RCP prices. Prices of select OCC, Double Sorted OCC, and also Super Mix waste from Europe and U.S have come down by 30 to 50 $ pmt within last 2 week and expected to be more down for December shipments” Said Mr. Naresh Singhal, President, All India Waste Paper Dealer Association.

Mr. Singhal informed that current rates of double sorted OCC from US are 300 $ PMT, Select OCC from US is coming at $ 280/290 PMT, while select OCC from Europe is reaching to India at $ 270 PMT and super mix waste $220 PMT respectively. The prices are expected to be fall further by $ 20 to $ 50 PMT.

The price has no chance to improve till mid-January 2022. “People in US, Europe and in India tend to fall in vacation mood after 23rd December which will continue till the first week of January. “Demand from Asia remained mediocre, too. Finished paper ordering continues to be lower in China. What is more, high freight rates for sea containers are deterring many potential buyers in Asia from buying in Europe. "They are finding it easier to source cheaper paper in Japan and North America than in Europe," one market expert said.

These comparatively unattractive prices were compounded by logistical challenges as in previous months and in some cases had even grown worse. One merchant said that a shipping firm had pushed back the date for it to load recovered paper not once but nine times. Quite a few merchants also said that demand from Asia had subsided, a claim that not everyone was able to confirm. All things considered, most traders were exporting less recovered paper to Asia in November than in months past.

According to EUWID, as predicted in October, UK prices for ordinary grades and for recovered paper used in newsprint manufacturing headed lower across the board in November. Solid demand from the packaging and tissue sectors and even scanter supply paved the way for stable or even slightly higher prices for woodfree and pulp substitute grades. 

Mixed paper and board is more readily available, but demand has softened. On the one hand, many paper producers in Europe now have excellent inventories or are even above their target levels. On the other hand, hefty energy costs meant that some paper machines were taking downtime, which has reduced demand for recovered paper. In a few instances, sellers are already finding it harder again to move material.

According to Fastmarkets RISI's PPI Asia reported on 3rd December 2021  falling recovered paper (RCP) import prices in Taiwan and Southeast Asia (U.S. OCC prices to SE Asia dropped by another $5-$15/tonne over the past two weeks) owing to packaging demand weakness in China and shipping "chaos." Regarding the former, Chinese recycled containerboard prices fell in late November following earlier rises. Packaging demand weakness has been a recurring theme of late.

Mr. Singhal says that finish paper dealers are not interested to maintain high stocks of finished paper in their godown due to liquidity crunch or fund crisis. On the other hand, Stock of RCP is available with Paper Mills appropriately.

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