The effects of the Global Stimulus started becoming more evident by the beginning of the third quarter, with the green shoots of recovery starting to sprout.

This clearly gave the first positive signs that the Recession was bottoming out.

Reduced levels of collection, rising unemployment, increasing freight rates, the strengthening Euro and stable to firm export demand, briefly describes the challenge that we all faced during the third quarter.

Further progress was made during this quarter in being able to clarify the requirements of new Inspection controls & regulations that were being imposed in Indonesia & India.

Following consideration by the Indonesian Government, the list of registered surveyors authorised to undertake inspections was extended and now a list of more than 20 globally-approved surveyors has been announced.

The Indonesian Government are considering to bring in inspection controls effective 1st January 2010, although a formal announcement is still awaited.

Following joint BIR and ISRI representation to the Government of India, further progress has been made in clarifying the inspection control requirements.

Rising unemployment, low levels of collections and a steady upturn in domestic demand combined to strongly affect the recovered fibre price as well as the volumes available for export.

Domestic demand and prices were noticeably stronger following the July/August holiday period. The export prices were slowly rising due to increasing freight rates, the strengthening Euro/weakening US Dollar, and higher domestic prices.

OCC export prices to China started the third quarter around USD130 and rose steadily to USD150 or more by the end of the quarter. Similarly prices for Mixed Paper rose from USD120 to about UUSD145 during the same period.

Freight rates for the year to date have risen steadily by up to 100% in some cases, and even more in certain EU countries.

Demand from other Asian countries during the quarter continued to remain stable to firm, with export levels of recovered fibre continuing to grow. India, Thailand, Indonesia, South Korea & Taiwan all continued to demonstrate growth in demand and are projected to remain the same over the short-medium term.

Following the Chinese National Day and Mid-Autumn Festival holidays, the markets are awaiting with interest to see the procurement & demand levels of the Chinese buyers for the fourth quarter.

Price levels for the final quarter of the year will be dictated by the demand from Asia, as well the growing domestic consumption levels in Europe, made difficult by reduced collection levels.