This year is likely to remain another difficult year for the recovered paper market, according to BIR Paper Division president Ranjit Baxi.
Writing in the most recent BIR World Mirror on Recovered Paper, he says that factors such as the eurozone crisis and increasing oil prices have made the market tough.
He added: “All of these factors have undermined confidence in Europe’s economic wellbeing as well as impacting upon exports to economies in Asia where a fall in order books has given rise to lower GDP growth – particularly in China and India – for the first time in a decade.
“At the start of the year, cautious consumer spending resulted in reduced recovered fibre collection levels, supported by strong domestic demand. This made exporting a challenge. Prices for January and February remained firm, with some EU countries reporting bumper export figures for this period.
“With increased sea freight rates emerging by March, and Asian economies showing the first signs of restraint, export orders for China started to soften.”
He also noted that the quality of recovered fibre is becoming of “prime importance for all Chinese mills and this has, in turn, favoured increased imports from the USA.”