Market Dynamics
Higher freight rates and container shortage hamper UK recovered paper exports
Time: 2014-03-24 Source from: www.euwid-paper.com
During the last two weeks UK recovered paper exporters had to deal with higher freight rates and a massive container shortage.
Combined with an only mediocre demand for recovered paper in China, higher freight rates lead to a price drop for exported mixed paper and OCC.
A lot of material that was meant for export did not leave the country.
As a result of the oversupply, domestic prices for OCC and mixed paper followed suit with a little time lag.
Experts expect the container shortage to last until mid-April and believe that mixed paper and OCC prices will soften further until then.