The price of recovered paper is continuing to rise as export demand outstrips supply, which is traditionally low in February.
Following uncertainty in the paper industry over where the prices would head as the Chinese buyers came back online after the new year celebrations, prices across OCC and news and pams have crept up and some traders are paying up to the £135 per tonne mark. However, the MRW/WRAP price, which reflects the broad range of trades, for news and pams and OCC is £120-125. Just a week before they were trading at £5 less per tonne.
Paper reprocessors and mills believe this is due to the low material arisings they experienced in February against the strong demand from Asian markets.
One recycler said prices may remain high for quite some time: “Prices are stable and at the moment there is no sign that they will go down. February is usually quite a slow month in terms of getting hold of material, so we should feel more material flow in March.”
Others agree with this sentiment, as one insider commented: “April will probably be the key month for increased paper arisings because of the bank holidays as people produce more paper and buy more goods, producing more packaging waste. I think we will start to see more material towards the back end of March, especially as paper mills begin to build up stocks for orders before the holidays hit.”
For more information on MRW/WRAP prices, go to: www.mrw.co.uk/prices