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Turkey

Having begun in September 2022, the contraction in demand continued throughout 2023, particularly for brown paper mills where capacity utilization rates decreased to 70%. Turkey’s high levels of inflation and rapid increase in foreign exchange, along with the effects of the February 2023 earthquake, led to a contraction in its economy and to rising unemployment rates.

Paper mills and recovered paper collection companies have been unable to raise their sales prices sufficiently despite their increasing costs and falling production volumes. Expectations for the country’s paper industry in the first quarter of 2024 are no different to 2023. An additional market factor is that some of those companies to have invested in new machines will be ready to start production in the first half of this year.

A general decrease of around 20% in recovered paper availability was observed throughout Turkey in 2023 and stocks are at minimum levels for all parties. Also, the quality of Turkey’s recovered paper is far below the desired level owing to winter conditions. Therefore, recovered paper imports are expected to increase in proportion to demand for finished paper.