Recovered Paper Prices Plummet on German Market in June

The downward trend in recovered paper prices that began tentatively in May has gained significant momentum in June.

Prices for mixed paper and board (grade 1.02) and supermarket corrugated paper and board (grade 1.04) fell sharply this month, following initial slight declines observed in the second half of May.
Market players attribute the price collapse to a marked drop in demand from the paper industry. Amid a weak order situation, production has been scaled back and individual machines taken offline. However, the overall picture varies across the sector, with not all producers equally affected.

At the same time, the recovered paper supply situation has eased considerably for many mills. Industry insiders point to high import volumes from other European countries in recent weeks. Substantial quantities have been redirected to Germany from countries such as the United Kingdom and the Benelux states, which traditionally supply the Asian market.

Export volumes of supermarket corrugated paper and board have also declined, as weak demand and unattractive price levels in Asia made overseas shipments less viable compared to domestic sales.