UK recovered paper – tumbling pound drives up demand
26th October 2016 | Recycling
The UK recovered paper market did not cool in October, which is in stark contrast with forecasts made by many experts. More recovered paper had been collected and cargo rates for sea containers had edged higher, with experts typically quoting an increase of $50-100 per container.
These effects were offset by a substantial drop of Sterling against the Dollar and Euro. The weakening pound had driven up demand from mainland Europe and Asia. Consequently, export prices for mixed paper and OCC stayed the same or even edged a couple of pounds higher, according to market sources.
Issues with sea containers logistics were creating a particularly tense situation on the export market, experts noted. The problem was getting containers to the right location at the right time. One buyer reported that his entire staff was occupied with organising containers and another contact said that container availability was a question of price.
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