Posted on 17/10/2014 in category Paper

BIR World Mirror on Recovered Paper / Quarterly Report - October 2014

Ranjit Baxi, J&H Sales International Ltd

International Market with a focus on Asia

Sluggish growth data coming from emerging economies and revised GDP projections from within EU member countries and China have resulted in an increasing dependency on the US economy to support growth in global trade.

Currency volatility, with the strengthening of the US dollar and the weakening of several other leading currencies both in the West and among emerging economies, is helping to sustain dwindling global trade. India is one of the few countries showing signs of improved growth, alongside Vietnam and Indonesia.

During the third quarter, there was a steady decline both in prices and export volumes, due primarily to weakening demand from Asian markets - mainly China. Fibre quality continues to be buyers’ primary consideration in deciding the procurement region for raw material, with US origin given priority.

OCC prices, which started the third quarter at levels of US$ 180+ per tonne, failed to reach higher ground given the weaker export volumes. In mid-August, levels of US$ 175+ per tonne were also tested. With increasing demand for graphic papers, there was some steady demand for mixed paper, which maintained the levels of US$ 160+ per tonne achieved at the end of the previous quarter. Lower export prices were tested for this grade too. (...)

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