Recovered paper prices may soon recover from the slump: PRC India

NEW DELHI (Scrap Monster):  Industry experts speaking at the recently held Paper Recycling Conference India expressed the hope that recovered paper prices are at the bottom end of the cycle. The slump in prices may come to an end and the prices will recover soon. The two-day conference was held on Jan 29^th and 30^th at the Taj Palace Hotel in New Delhi.

Addressing the meet, renowned paper and recycling industry consultant Bill Moore of Atlanta-based Moore & Associates noted that recovered paper prices have collapsed during late-2014 and early-2015. However, he highlighted several factors that may prevent further price fall and initiate a slow upward journey.

A healthier global economy is likely to play a major role in boosting recovered paper prices. The prolonged economic slump in the Europe and excess capacity by Chinese mills had been the major contributors to the price slump. But having touched the bottom of the cycle, the prices are poised for a rebound.

The low mill operating rates in China has kept the old corrugated container (OCC) market under pressure. However, the country’s excess board mill capacity will soon be soaked up.

The other factors that may affect scrap paper pricing are virgin pulp prices, ocean freight shipping costs, currency exchange rates, disposal (landfill) costs and inventory levels at large paper mills.

Moore also noted that North America and Europe are almost at maximum recovery. Countries like India and China may increasingly focus on domestic collection.