One of the world’s largest paper manufacturers has said that it believes the price of recyclable paper will continue to fall in the short-term.
Israeli company Hadera, which owns the Mondi brand and has a worldwide partnership with Kimberly Clark, said in its annual results that it expects prices of recyclable paper and board will continue to drop but demand remains strong.
In its results statement, it said: “The company estimates that the demand for recycled packaging paper, as a replacement for virgin packaging paper, is continuing in global paper markets. Following a slowdown in the global packaging paper market, in terms of virgin products in the third quarter, a decrease was recorded in the prices of recycled products.
“The trend of decreasing recycled product prices in the global packaging paper market – that began in the third quarter – amounted to approximately 4 per cent in relation to the second quarter. The company estimates that this trend will continue in the near future as well.”