BIR releases Paper World Mirror- June ‘15

BRUSSELS (Scrap Monster): The Bureau of International Recycling (BIR) has released the Paper World Mirror for the month of June 2015.

Rise in paper demand during the beginning of Q2 this year resulted in higher export values. Increased buying was seen by mills in China during this period. OCC prices witnessed sharp rise of nearly 12.5% from $160-plus per tonne to as high as $180-plus per tonne. The prices of mixed paper climbed higher to touch $140-plus per tonne.

The capacity additions at existing paper mills coupled with commissioning of new facilities is likely to provide big boost to production capacities during the upcoming years. In Turkey, Kartonsan's KM2 and Modern Karton's new liner mill have already started production during the second quarter. Lee & Man Paper Manufacturing and Vina-Kraft in Vietnam are likely to complete installation of new machines by 2016 and 2017 respectively. The newly installed machine at Snodland by Smurfit Kappa is likely to commence production at the earliest.

The huge drop in printed media has led to significant decline for newsprint in Asian countries. As a result, many Indonesian paper mills were forced to implement forced shutdown and production cuts.

The deinking market demand has increased strongly during the second quarter in Spain. The rise in prices failed to match with the sharp increase in OCC prices. White grades too remained in high demand. In Germany, demand for all fibre grades continued to remain robust. However, collection volumes failed to pick up. Meanwhile, France has reported modest collection rates and higher demand during the quarter.

The recovered paper collection volumes surged higher by whopping 19% in the Czech Republic during the first quarter of the year. On the other hand, Finland reported annual decline of 6.7% in collection volumes during 2014. Exports from the country plunged heavily during the year on the back of rising domestic demand within Finland. The demand continued to remain strong during the second quarter of 2015.