First price hikes emerge for recovered paper in Italy

With new lockdown measures imposed and collection volumes tending to fall, Italian prices for ordinary recovered paper have increased somewhat in November. More hikes might follow in December.

Prices for OCC in Italy
were very volatile this year

Decent demand, coupled with worries that collection volumes will decrease before long, was responsible for the upward pressure on prices for ordinary recovered paper grades in Italy in November.  mixed paper and board (1.02), supermarket paper, and board (1.04), and old corrugated containers (OCC, 1.05) became slightly more expensive.

The price development appeared to be influenced more by expectations than an actual imbalance on the market. Towards the middle of November, suppliers felt that recovered paper collection volumes had shrunk, but not to any great degree. However, all market players expect collection volumes to decline further in view of lockdowns and stay-at-home orders issued in many parts of Italy because of the Covid-19 pandemic. A bit of nervousness was spreading among some buyers as a result.

Demand for ordinary recovered paper grades was still described as good in November, with recycled corrugated case material producers in Italy being busy. Demand was also satisfactory from export markets, although merchants are complaining about a shortage in container capacity.


source EUWID

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