Waste Paper Solutions reports this week on the recovered paper markets and the effect of the market in the UK. In this article taken from Lets Recycle, two experts are consulted on their views on the current market.
David Powlson, Senior Principal at Pöyry Management Consulting, which has expertise in the paper recycling and mill sector, said: “The recent turmoil in the markets has created a degree of uncertainty, but the most significant macro-economic trend we have seen recently relates to industrial output in China.”
“The oil price is saving a lot of consumers money” Mr Powlson continued: “We continue to anticipate a tightening supply-demand balance in recovered paper markets – which can have implications on paper prices. However slower than expected growth of the Chinese economy continues to delay this.”
Commenting from the recovered paper sector, Johan Sundblad, managing director at SAICA Natur UK which operates the UK’s newest cardboard mill in Partington, Manchester, said that he felt there was a need to be pragmatic about the global economic view. “The oil price is saving a lot of consumers money, and is staying in the pockets of people who will have more to spend and this should help drive the economy forward. Yes, it is not good news for the Middle East and the southern states of the US but it is not such a bad thing as people say.”
Mr Sundblad added: “The shops are doing well and so is Amazon – overall retailers are not unhappy and car sales are also up.”
He predicted: “After a few months, it is likely things will be on track. Our paper mills are fully for 2016 and in 2017 there will be a lot of new capacity coming on stream with demand for good quality material.”