Paper prices drop
Prices in the paper recycling markets have seen falls of more than 30% since the start of October this year. Despite the recent drop in paper prices, industry leaders have revealed that a market crash is highly unlikely but further decreases should be expected until the end of this year.
Since 2008, when mixed paper prices dropped to lows of £5-15 per tonne, the ongoing pressure of the world’s economy hasn’t affected the recovered paper sector with prices reaching highs of £125 per tonne in August this year. The news that recovered paper prices have fallen by around £35 per tonne was viewed as ‘long-awaited market correction’.
The drops have been blamed on the recent economic downturn and a lack of consumer demand across the EU. The guidelines of good practice in waste disposal, imposed by the Chinese authorities can also be blamed due to tighter waste standards on exports.
It looks like prices are not due to stabilise until early in the New Year and maybe affected by export services to the Far East of mid-grade material. With December on the horizon when activity slows up anyway large drops are predicted before stability is reached.
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