Demand from European paper mills continues to slump, and a large number of exports push up the price of waste paper!

Demand from European paper mills continues to slump, and a large number of exports push up the price of waste paper!

The European waste paper market has been sluggish in recent months, but there was some price volatility in September. Prices for low-grade paper in particular rose, including bulk sorted mixed paper and cardboard, supermarket corrugated and cardboard, and used corrugated boxes (OCC). The price increase was largely due to European buyers' efforts to close the gap between domestic and export prices.

However, it should be noted that the demand of European paper mills is still sluggish, and the market fundamentals are not enough to support the price increase. Overcapacity, low demand and product price pressure are all problems faced by European paper mills.

Prices for deinking and mid-to-high-grade waste paper were relatively stable, in part due to a slight improvement in demand. The growth of classified mixed paper and cardboard also played a role in promoting price stability.

The price increase for bulk grade waste paper is due to increased export demand. European paper mills are still facing low demand and price pressures, but domestic buyers are struggling to close the gap between export prices and European prices in order to maintain a competitive advantage amid potentially changing packaging industry trends.

Inventory levels in the waste paper market remain high, but recycling of waste paper is low, which may be related to lower consumption.

Market watchers say it is difficult to make an accurate judgment on the trend of the waste paper industry in October. However, the last week of September will play a decisive role in the development of the next month and even the entire fourth quarter. Prices are expected to rise, especially in the southern region. But it is difficult to determine price action now due to market uncertainty.

Overall, the European waste paper market remains challenging. Demand from paper mills is sluggish, profit margins are falling and inventory levels are high. European paper mills can choose to stabilize prices or consider closing some plants to ensure sales pick up at the start of the pre-Christmas peak season.

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