The report also talks of dramatic falls in exports from the United States and of a slow down there. However, some US sources are now reporting that the situation is starting to ease in America and there may besigns that the market is levelling off.
The following are individual country reports from the BIR.
Czech Republic
The market appears to be in balance and should remain so for the immediate future, although prices of deinking grades, board and mixed papers have dropped by up to 10%. Those of higher grades are unchanged. In some cases, improved rates of collection result in a slight surplus which is being exported.
Although little change is expected in the forthcoming period, mills are reluctant to follow traditional practice and build stocks for the winter months.
Finland
The situation is stable, with demand generally very good and no sign of a slowdown. Mills are running full. Consumption of news & pams for deinking has evened-out somewhat, but this is seen as only temporary. Stocks held by mills and merchants range between low and normal depending on grade.
In the first eleven months of the year collection rose by around 11 000 tonnes and further growth is expected during 2001.
France
In general, the fourth quarter has been good for those mills able to stabilise new product prices while reducing considerably the cost of raw materials. Their business outlook remains positive.
Recovery of corrugated grades increased by 20% in October and November, exceeding the rise in domestic consumption. The tighter market for these materials evident in July and August became more acute, leading to price reductions of as much as 50%. Although the volume of exports to the Far East was sustained, prices declined.
The market for deinking grades has been regarded as stable, but imports from the United Kingdom will eventually upset this status quo.
Germany
Lower grades have been suffering from pressure on prices, as exports are very limited, the mills have been reducing their stocks, and there has been a seasonal increase in generation.
While a proportion of supermarket material is being purchased at normal prices, despite oversupply, the remainder is being bought at far lower and to some extent unofficial prices.
In November, demand from the domestic paper industry was subdued while sales of lower grades were satisfactory. The poorer trading climate had a major impact on recovered paper prices, with supermarket qualities and sorted mixed papers and board being particularly affected.
Slight signs of weakness were to be seen in October, with some prices trending a little lower, even though demand was satisfactory – mainly from European consumers.
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