A leading paper exporter has said that there are “hopes of a stronger third quarter for exports of European fibre to Asia”.
Writing in the latest BIR World Mirror for Recovered Paper, J&H Sales managing director Ranjit Baxi said that sluggish economic performance of Asian economies and the Chinese Green Fence had made trade more challenging, but there was hope that conditions might be improving.
He wrote: “The economic doom and gloom, plus such quality controls, certainly impacted upon export volumes in the second quarter, which also affected prices. Weakening trade also resulted in freight rate reductions during the quarter.
“OCC prices began the second quarter at levels of $200+ per tonne and weakened to end the period at $185+.
“Mixed paper prices followed a similar trend, moving down from $170 to $160+.
“Demand for deinking strengthened somewhat during the quarter, with prices remaining stable. Demand from other Asian markets, including India, remained weak to steady owing to weakening global demand and high inventory levels both for recovered fibre and finished paper at the mill.”
“The US dollar continued to strengthen for most of the quarter, helping in a small way to compensate ex-works European prices which otherwise would have been even lower.
“By the end of the quarter, there were signs of some strengthening in export demand. With the forthcoming summer holidays in Europe, there are hopes of a stronger third quarter for exports of European fibre to Asia.”