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Cardboard Prices fall again in March

Posted at March 26, 2014 | By : | Categories : News | Comments Off on Cardboard Prices fall again in March

Volatility in the world commodity markets is being seen in domestic prices for secondary raw materials including waste/recovered paper.

Prices for used cardboard on the export market have again reduced this month, moving down to below the £80 per tonne mark although there is some variation on this.

Chinese mills are also seen as having good inventories and so do not need to panic buy used cardboard, even if supplies are disrupted by a shortage of containers. The Chinese mills also continue to increase the amount of raw material they source within China.

The increase in freight prices of about US$300-400 puts the cost of a container now up to about US$1,000, although this is still below prices which were charged in the past.

Alongside the increase in freight prices, shipping lines have cut back vessels on routes between Europe and China. The wet weather in the UK at the start of the year, also hit exports because products, not just waste paper, were delayed on their journey to the ports and so there was an unusually high demand for containers.

UK cardboard mills are expected to take advantage of the situation and to ease down the prices they pay because they are likely to be offered additional material to what is normally supplied by merchants.

Prices for mixed paper are also expected to reduce because of weaker demand among UK newsprint mills. Their order books are down and at least one major mill is thought to be taking downtime for refurbishment work during March.

Consequently with a weaker demand for used newspapers, more mixed material (which can contain newspapers) is being offered to the cardboard mills.

For a guide on current paper prices, visit:

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