Norexeco to launch recycled paper contracts in October

The Oslo, Norway-based Norexeco Exchange has announced it will be introducing new futures contracts for recycled paper that will be available for trading on its exchange platform Tuesday, Oct. 6.

The exchange’s initial announcement offers few details on the new contracts, instead saying additional information will be announced the week of Sept. 7-11.

In an appearance at the 2018 Paper & Plastics Recycling Conference Europe in Prague, Czech Republic, Norexeco ASA Director of Sales and Marketing Frederik Husebye described plans for the exchange’s initial OCC (old corrugated containers) trading contract, which was subsequently introduced in 2019.

Husebye remarked at the time that the OCC contract would be offered in euros and designed initially for paper recyclers, containerboard producers and other buyers and sellers of OCC in Europe.

Norexeco had been offering a pulp trading contract that still has room to grow, according to Husebye. He said while copper is traded on contracts globally at a rate 40 times its actual physical market size, and aluminum at a multiple of 30, activity on pulp contracts amounted to less than 10 percent of the size of the physical global market.

Norexeco describes itself as a regulated commodity exchange offering trading in cash-settled financial futures, designed to offer those in the pulp and paper sectors worldwide with methods “to efficiently manage risk and capture opportunities.”