SCA faces challenge with RCF

Company spokesman Gunna Vrang said that global demand for RCF packaging grades has slowed, which has led to lower collection rates for these grades.

SCA is a net buyer of recovered paper with 67% purchased externally in 2007 and 38% coming from the company’s own collection.

According to Vrang, the UK is the only country in the world that has to export over 50% of its RCF and so “feels the economic slowdown more than other countries”.

Recovered paper prices for the fourth quarter have fallen by approximately 50% since their peak at the start of the year.

Last week Jonathan Short, chief executive of AWS Ecoplastics, told Packaging News that prices were stabalising, but maintained they would remain low for some time due to the global recession.

“People are having to get used to lower prices, although the situation is now not as tough as a couple of weeks ago,” he said.

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