Posted on 14/10/2016 in category Paper
BIR World Mirror on Recovered Paper / Quarterly Report - October 2016
Ranjit Baxi, J&H Sales International Ltd
International Markets with a focus on Asia
China, an economy of US$ 11tn-plus, is currently going through a period of readjustment, with the service sector enjoying a corrective growth phase while the manufacturing sector is in something of a declining phase. China’s GDP is still projected to grow at a rate of over 6% for this year, which is equivalent to some US$ 700bn. Some healthy growth was posted in the first half of the year but a slight slowdown is projected for the second half.
The quarter also brought a major shipping casualty with Hanjin Shipping Company filing for bankruptcy. There has been a decline in both east- and westbound sea freight rates alongside an increase in shipping space with the introduction of larger sea-going vessels of over 18,000 TEU as well as a decrease in export cargo volumes. The result has been that many shipping lines posted losses for 2015 and many have continued in the red during 2016.
Fibre exports have remained challenging owing to price volatility with European mills paying higher prices, increasing European demand, and a slight reduction in export volumes and prices. Having been at lower levels, US prices started to show significant gains which helped to sustain European export volumes.
Currency fluctuations with a strong US dollar and a weakening Euro and pound following the Brexit vote certainly helped to increase Europe’s export volumes at competitive prices (...)