RCP prices continue upward movement in March

The rise of the recovered paper (RCP) prices again on many major European markets in March 2011 is discussed. After increases of up to €15/ton for the lower and approximately €5-10/ton for some medium and higher grades in January, the price development calmed down again in February, with only a few countries reporting minor increases for some grades. The rising trend in prices was fuelled by several factors. While market experts reported that RCP arisings, which were hampered by inclement weather conditions in many parts of Europe in early 2011, were back at normal levels, healthy demand from both European and Asian papermakers absorbed any additional supplies. In Eastern Europe, RCP supplies continue to be very low due to the new machines the Hamburger Group, Mondi and Propapier started up in Hungary, Poland and eastern Germany in 2009 and last year.