OCC prices fell during the first quarter amid a surplus of raw material. Mixed paper is facing the same challenges and prices dropped as much as for OCC during the period.
For newsprint and graphic papers, many mills are recording low utilization rates. Demand for newsprint and sorted office paper was lower during the first quarter. Owing to the relatively warm winter, demand from insulation producers was weaker than in the first three months of 2019.
We have seen the end of price reductions in Scandinavia for the time being. If it was not for the impact of COVID-19, the curve would most likely have flattened out for the brown grades and bounced back for graphic papers. In response to the low mixed paper prices during the first quarter, significant volumes were sorted into deinking grades, resulting in an oversupply within that market.
Scandinavia is facing a steep drop in collection volumes owing to the difficult time for industry whereas household collections have not been affected.
Stena Recycling (SWE)