These grades continue to confound expectations by prices remaining strong and maintaining steady increases in both export and UK domestic markets. Prices and demand show no signs of abating as yet while there seems to be no catch up in source volumes as yet to meet the demand so that prices cool off too sensible levels. 

UK market prices are now in most cases almost in line with export prices, especially in the case of non – integrated mills which cannot rely on the price support of subsidiary recycling companies to supply tonnage at realistic levels. Not since the mid nineties have we seen prices in three figures for OCC and it may only be a matter of time before we see the same three figure price trend for mixed paper also. As is normal with these grades, we all wait the great fall / crash / bang, but it does not seem to be materialising in the near future. Export and UK ex wks prices are at £120 p ton to £130 p ton and gradually increasing.

De-ink:

Reports show that de-inking grades show no decrease of prices from the European Mills, with reports that some mills are purchasing spot tons at increased prices. Better prices seem to be achievable in the Far East right which could prompt UK / European mills to react by further increasing prices. It appears that newsprint mills in Europe are running at full speed and for the New Year finished paper sales contracts, they are increasing significantly their finished paper sales prices. Some Newsprint buyers even do not expect decrease of waste paper prices and time soon and certainly not in the first quarter of 2011.

Tissue:

Nothing of significance to report – demand and prices are stable while being on the high side. As offices / printers start to open up again in January, this will bring extra volumes on the market which may affect prices, however it is very much a wait and see situation on this sector. Lets recycle show a slight cooling of prices in December 2010 but this may be attributed to mills taking maintenance / downtime during the holiday period.