The final quarter of 2020 was quite challenging with regard to OCC. On the one hand, export buyers put pressure on the market and drove prices higher. There were many new players on the market overall from India. However, a lack of available vessels and containers made exports more difficult, and freight to other Asian countries meant a higher transport component and so a lower net price. This is the reason why domestic paper mills could afford to offer prices below export levels despite their large demand and low supply. Stock levels were really low at all yards. Prices increased every month and ended the quarter around 30% higher than at the start.
Deinking prices were increasing at a similar rate. However, this market was more in balance, with less export pressure and much lower domestic demand.
White grades have been more difficult to manage owing to high prices from the packaging paper industry, which the tissue market could not afford owing to low virgin pulp fibre. Some collectors were reluctant to accept the lower prices from tissue mills and decided to stock up on these grades because packaging mills were not demanding all the available material.
Francisco J. Donoso
ALBA Servicios Verdes S.L. (ESP)
Country
Spain