During April, UK corrugated producers had been warned by paper mills that there would be an increase in cost, in the region of £30 per tonne, for all recycled grades, due to the tightening supply of OCC. However, by 1st May, it became apparent that the increase had been rejected by UK corrugated producers, as many face softer order books and lower volumes due to the COVID-19 pandemic.
“The increase has collapsed,” noted one independent. “Some mills have deferred until 1st June, but others are now saying any imminent increase is unlikely.”
Another independent said, “These are strange times and one benefit of that is that the price increase wasn’t fully supported and there was obviously a lot of resistance. It hasn’t gone away forever; the paper industry view it as a postponement until 1st June, but for now, there’s no movement.”
