Quarterly Report – September 2020

The region’s OCC prices fell in July and exports began to rise in the second half of that month. OCC and mixed paper then remained stable in August before increasing in September. 

Changes in both supply and demand were behind the falling market at the beginning of the third quarter. On the demand side, there was an increase in exports while the local market remained calm. Supply has returned, but not at the pace that was expected. Consumption still seems to be lower than it was prior to the pandemic. Most people had expected falling prices in August but the market remained stable amid rising exports out of Europe in the latter weeks of July and fears of a second wave of Coronavirus.

Newsprint remained under pressure in July but Scandinavian prices were stable despite low demand; production at Stora Enso’s Hylte mill will be focused mainly on pulp during the rest of 2020 and this will alter the Scandinavian newsprint market during the coming months. Prices for woodfree grades suitable for tissue have moved up and down within a narrow range during the third quarter and are currently stable.

European tissue mills’ needs for material vary considerably. Several German mills are well supplied and are reducing their prices whereas Scandinavian tissue producers are experiencing a lack of material and have been looking for additional volumes in August and September. The graphic material market is expected to be under pressure in the coming months, especially for newspapers.

Martin Leander - Martin Leander (Scandinavia)

Martin Leander

Stena Recycling (SWE)

Quarterly Report – September 2020