Posted on 16/01/2014 in category Paper

BIR World Mirror on Recovered Paper / Quarterly Report - January 2014

Ranjit Baxi, J&H Sales International Ltd
President of the BIR Paper Division

International Market with a focus on Asia

News that the global economy is expected to continue expanding at a moderate pace over the coming two years has been welcomed given the post-2008 financial meltdown and subsequent global slowdown followed by recession. The world economy grew by 2.7% last year and is projected to record increases of 3.6% in 2014 and 3.9% in 2015.

China, the engine for fibre consumption, has also begun to pick up.  Other developed and emerging economies posted similar trends during the fourth quarter of last year. However, currency volatility was a major challenge during the same period, with export pricing made difficult by the increased fluctuations in the exchange rates between the US dollar and both the Euro and sterling. Freight rates tended to remain reasonably stable during the quarter.

Export volumes increased during the quarter both to China and India while other Asian countries have also started to increase their fibre procurement. At the same time, we are continuing to see increasing signs of export volumes out of the USA outpacing those from Europe. Quality of fibre and prices are continuing to take centre stage.

OCC prices for Asian main ports began the fourth quarter of 2013 at US$ 195+ per tonne and moved up to US$ 200+ before ending the year at the lower level of US$ 185+. Mixed paper demand again fluctuated during the quarter, primarily driven by quality standards; prices began October at US$ 165+ per tonne and climbed to US$ 170+ prior to ending the year at US$ 160+.

Read the full market report in our members' area.