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U.K. Recovered Paper Prices Continue to Slide

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Prices for recovered paper are still pointing down in the U.K, according to Germany-based EUWID Pulp and Paper. There seems to be no end in sight for the negative price trends, it adds, pointing to another price reduction in the domestic and export recovered paper markets in August.

U.K recovered paper exports to China "remained subdued in August due to slow demand from Chinese paper mills," EUWID notes. "In addition," it continues, "several Chinese customers, who were placing higher quality demands on recovered paper deliveries from the U.K. as of recently, were putting pressure on British suppliers to lower their prices to compensate for what they considered low-quality volumes.

Moreover, downward pressure on U.K. export prices in August was exacerbated by falling prices on the recovered paper market in the U.S." Domestic prices for recovered paper headed down on weak demand and good supply. Recovered paper warehouses and yards at many recycled tissue and packaging paper mill were full to the brim in August, EUWID reports.

"Against the background of high stocks and abundant recovered paper supply, EUWID continues, recycled paper manufacturers were rather cautious in ordering new volumes." British recovered paper prices are expected to become cheaper again this month, it says. Despite lower recovered paper due to the holiday season, excess supply will persist for some time, continuing to put pressure on prices, EUWID respondents believe.


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