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66 March 2014

M A R K E T A N A L Y S I S

Closed: March 3 2014

US weather still influencing
market climate

Although the harsh winter weather
conditions have eased in many parts of the
USA, their impact on the global recovered
paper market continues to be felt. With
some domestic mills striving to rebuild
their stocks after a prolonged period of
supply disruption, buyers in other regions
of the world are continuing to experience
a marked reduction in US recovered
fibre availability. Even so, some
Chinese mills have tried to push down
prices paid for Europe’s lower grades.

Europe
Cutting capacities
The infl ow of lower grades to merchant
processors’ facilities has been satisfac-
tory although stocks are not high. Most
of Europe’s mills kept their recovered
paper prices stable in February despite
very good demand from Europe and
Asia. For the Far East, OCC prices have
reached a reasonable level following a
period of relatively low demand.
Shipping has become easier and most
Asian customers have obtained their
import licences. For March, however, the
situation remains unclear as shipping
lines have continued with their attempts
to push up their rates – in some cases
temporarily cutting their capacities.
Another infl uence on the Far East mar-
ket is the lack of fibre availability

from the USA where
weather condi-

tions have remained diffi cult. That said,
fi nished product sales prospects for mills
in the Far East appear lacklustre.
Although demand is good in Europe,
most deinkers are carrying large stocks;
orders from Asia have been at lower
price levels. European demand has also
been healthy for most of the middle
grades of recovered fi bre and prices
have stabilised or climbed slightly
given reasonable incoming volumes;
for these grades too, business has
increased from India and other Asian
destinations but, once again, at slight-
ly lower values. For the higher grades,
there is not much material around and
prices have tended to improve amid

good demand.

North America
Aggressive buying

The severe mid-winter storms that
froze parts of the USA also chilled sup-

ply lines for corrugated:

Paper and board production in Europe totalled around 91 million tonnes last
year – down more than 11 million tonnes from the peak of 102 million tonnes
registered in 2007, according to preliminary statistics from the Confederation
of European Paper Industries (CEPI). Import and export fi gures were lower for
the year whereas the organisation estimates that its members’ utilisation of
paper for recycling increased by around 0.5%.
‘It appears that the overall consumption of paper and board in CEPI countries
in 2013 decreased between 1% and 1.5% when compared to 2012,’ the
confederation states. ‘The fall in graphic paper sector demand was offset by
the more positive development in the packaging paper and board sector.’
Some 45.9% of paper and board produced across the continent last year was
in the form of packaging, with coated graphics on 16.6% and ‘other’ uncoat-
ed graphics on 16.3%. Newsprint came next on 9%, sanitary & household
on 7.7% and ‘other’ paper and board on 4.5%.
Paper exports from CEPI member countries fell more than 2% in the fi rst three
quarters of last year, with other European nations accounting for 35% of the
total, Asia for around 28% and North America for 11%.
Early estimates suggest that world paper and board production
increased by 1% in 2013 following a 0.2% decline in the previous
year. Following a ‘stagnant’ 2013, however, CEPI points to GDP growth
forecasts for the EU of 1.4% this year and 1.9% in 2015 as indicative of
potentially better prospects for the paper and board sector.
www.cepi.org

European paper demand dips in
‘stagnant’ 2013

RI-2-2014-MA Paper&Textiles.indd 66 05-03-14 15:04