Posted on 09/07/2015 in category Paper
BIR World Mirror on Recovered Paper / Quarterly Report - July 2015
Ranjit Baxi, J&H Sales International Ltd
International Markets with a focus on Asia
We continue to trade under mounting geopolitical stresses, with failure to find an acceptable agreement between Greece and its creditors as well as increasing currency volatility following the strengthening of the US dollar and the weakening Euro.
European economies continue to benefit from a combination of relatively low oil prices, a depreciating Euro and weak-to-steady global growth which is, in turn, stimulating demand within Europe. Meanwhile, growth in the major emerging economies - China and India - is continuing to weaken, which is affecting export demand for fibres from Europe.
Sea freight from Asia to Europe has remained in decline whereas outbound rates have continued to rise, aided by vessel omissions effectively reducing container space.
The second quarter started with US fibre availability and prices remaining sluggish owing to weakening demand from Asia, which resulted in fibre prices staying lower generally. This had a direct effect on export prices for European fibres. But during the quarter, there was a small shift in demand which helped strengthen export values. OCC prices began the quarter at levels of US$ 160+ per tonne and strengthened over the period to US$ 180+. Similarly, mixed paper prices which started 2015 at levels of US$ 120+ also made a positive move to US$ 140 (...)