Turkey

As trade was deeply affected by the pandemic in both 2020 and 2021, there has been a substantial acceleration in recovered paper sector growth. Increased demand pushed up prices and profitability reached top levels. As a result, many companies have decided to increase their investments in this sector, with 3 million tonnes of production capacity anticipated by 2024/25.

In the first and second quarters of 2022, a fall in demand led to a decline in the prices of finished products. Expectations are that this negative trend will continue in the third quarter but that the final quarter of the year might bring an increase in demand.

Recovered paper prices in the domestic market declined 25-30% in the second quarter. Owing to rising inflation around the world, large increases in all costs meant that neither paper mills nor recovered paper sellers were able to make profits during that quarter.

Despite this increase in all costs, the third quarter has also seen a downturn in sales prices, although the general expectation is that the sector will return to normal from September.