Quarterly Report – May 2021

At the beginning of the year, there was significant demand for OCC as well as for other grades of recovered paper, with the markets following the rise in prices from the previous month. As in other markets, paper production was supported by the resumption of industrial activity - an important step out of the COVID crisis.

In February, the market awaited the next moves regarding demand, with the result being another huge price increase of almost 80%. Paper mills across Europe were left hunting for material and, in many cases, were prepared to pay higher transport costs and to source input from more distant locations.

April confirmed the same market trends, bringing continued validation of the high price levels. However, such huge upward movements also create plenty of nervousness, prompting the question as to whether we are really in a bull market or whether this is just a bubble.