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Recovered paper sector stays stable

Posted on 25 January 2016

The recovered – or waste – paper sector has started the New Year with steady demand from China for used cardboard which is helping to add stability to the sector.

And, in contrast to metals and plastics, overall, the recovered paper sector was relatively stable in 2015 apart from a short-term fall in the value of used newspapers in the wake of the Aylesford Newsprint closure in February of the year.

Now, however there are some expectations that the export market could weaken a little in coming months because of the slowdown in the Chinese economy, but there is little talk of a price crash and instead more expectation of reductions by relatively small amounts.

The biggest challenges are currently seen in the mixed paper sector with the value of municipally-sourced mixed material reducing slightly.
An international perspective on the markets has come from the Bureau of International Recycling which in its latest report talks of some price softening later in the year but a static picture for many grades.

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