UK exporters of paper are not concerned about the impact the Chinese New Year might have on markets, as a result of traditionally low collection levels in February.
According to industry experts, the 10 day shutdown of the paper industry in China - which includes mill downtime for maintenance – will not cause too much disruption to the market. It is thought that the drop in demand for material from China will be balanced by the drop in the amount of material collected in February.
Historically, people tend to buy less immediately after the Christmas period, which therefore leads to less packaging waste.
Mark Lyndon commerical director Paul Briggs said: “February is the worst collection month in the year excluding August when people go on holiday. The fall in demand from China is counterbalanced by February being one of the worst retail months. So, in theory the Chinese New Year should have an affect but it doesn’t.”
Indeed, prices are expected to stay level as demand and supply fall in line with one another. However, it could mean domestic prices will rise as mills look to fill up before the royal wedding.
ACN Europe managing director Niels Van Binsbergen said: “More paper is collected domestically in China over the new year as gifts are bought and more packaging waste is produced. Additionally, material needed for after the new year celebrations has already been bought. So, it might take until 14 February for any mills to actually place new orders, but they will have a lot of orders to place and they have been looking more towards Europe for material because of the low value of the euro.”