J&H Sales International managing director and BIR paper division president Ranjit Baxi has said 2013 looks to be a “year of recovery” for recycled paper.
Writing in the latest BIR World Mirror for recovered paper, he said that 2013 will remain a challenging period despite a more positive outlook, but will be welcomed after volatility in 2011 and 2012.
He added: “Projections for European and Asian economies are all pointing to positive growth, albeit from as low as 0.5 per cent for some European countries up to 8 per cent for China.
“Talk of recessionary trends in western economies and receded and consumer confidence has been gradually recovering.
“Recovered fibre prices and demand started strengthening in early January and continued to higher levels from the previous quarter. Currency fluctuations in this quarter helped to maintain a strong export price, with the US dollar/euro exchange rate strengthening from 1.37 to 1.28 and with similar movements seen in sterling.”
He also noted that freight rates stayed relatively stable during the quarter, but warned that there may be freight price rises in the second quarter of the year.
Ranjit Baxi also added that following Chinese New Year, there had been a pronounced drop in prices that has had an effect on prices.
Additionally, he warned of the impact of Chinese import restrictions. He said: “Tighter quality controls have been increasingly implemented by most importing countries. Controls on imports into China have required more containers to be examined to ensure that the quality meets with the higher standards imposed…
“…As the second quarter unfolds, the market is looking for clearer direction on the growing demand and quality requirements for the remainder of the year, with special emphasis on the second half of 2013.”