In the last 10-12 days we have seen some momentum in the market, much to the respite of the suppliers overseas. A part of this is to do with the Chinese companies who have bought heavily before their New Year holidays starting 26th January. In the winter’s, year after year we hear that prices are going up due the lack of generation, and “yes” this could play a vital role in the months ahead. The retailers in the west have had a very disappointing season with sales dropping to all time lows which has led to lack of generation of recyclable waste. This could lead to a shortage in supply.
However, looking at the finished market it is difficult to believe that the markets will see a sharp increase in prices as the sale of finished paper is not strong enough to support any steep increase at this point.
Keeping these points in mind, markets will surely move up a little though whatever said and done it surely will be a slow move.