The German recovered paper market continues to show very limited price movement, with paper mills in several regions building up inventories to prepare for possible price increases later this spring, according to market sources.
Market participants describe the situation as broadly balanced. Collection volumes remain relatively low, but demand from the paper industry is also modest. As a result, prices for standard grades such as mixed paper, supermarket paper and board remained stable again in February. Only minor adjustments were reported in isolated regions.
For other grades as well, market players report only small changes in price lists this month. Overall, the market is characterised by caution, with neither supply nor demand exerting significant pricing pressure.
Stockpiling ahead of possible price shifts
Despite the current stability, some companies in the waste management and recycling sector believe notable price increases could be possible in the near term. They point to the traditionally weak supply of recovered paper in February and March, which often tightens the market.
Potential logistics bottlenecks around the Easter period are also seen as a risk factor. In addition, a possible acceleration in export activity could support higher prices, according to some market participants who refer to developments in previous years.
To prepare for such scenarios, several paper mills have built up significant inventories of recovered paper. The aim is to secure raw material availability in case prices rise quickly or deliveries become disrupted.
Demand outlook remains uncertain
Other market observers take a more cautious view. Planned downtime at paper machines in the coming months is expected to reduce short-term demand from the industry.
A representative of the paper sector told EUWID that mills had already delivered unusually high volumes of finished paper in January because customers brought forward orders in anticipation of potential price increases.
– The situation is therefore not comparable with last year, and a sudden rise in recovered paper demand, along with higher prices, is unlikely, a source in the paper industry told EUWID.
The overall picture is of a market marked by balance and restraint. Any price movement in the coming months will largely depend on how industrial demand develops, whether export volumes increase and whether logistical disruptions materialise.
Recovered paper remains a key raw material for the European paper industry and is widely used in the production of packaging, board and newsprint. The market reacts quickly to shifts in industrial output, trade flows and transport conditions, which means prices can change within a short period when supply-demand dynamics tighten.
