BIR releases Paper World Mirror-October 2013

NEW YORK (Scrap Monster): The Bureau of International Recycling (BIR) has released the Paper World Mirror on Recovered Paper -October 2013. The excerpts from the report are provided below.

Recent months have brought a growing awareness and understanding of the requirements of the 'Green Fence' import controls adopted by China.

China's CCIC certification and inspection group has informed the association for secondary raw materials and waste disposal (bvse) in Germany that the frequency of container controls at Chinese ports of entry has climbed from an average of 6% to more than 50%, although not for all countries of origin.

But despite arousing initial concerns and having a continued impact on the lower grades of recovered fibre in particular, the market appears to have arrived at an accommodation with 'Green Fence', with suppliers reacting accordingly to its quality and moisture strictures, according to feedback from the UK. 'Chinese demand has been fairly consistent and material continues to move easily at decent and sustainable prices,' it is added.

It is acknowledged that some lower-grade MRF mixed has proved particularly difficult to move, with China 'no longer a viable option for the lower-spec material'. Other UK, European and global markets 'have absorbed most of the surpluses, albeit at generally lower prices than were being obtained in this year’s first quarter'.

Exports from Europe to China and other parts of Asia have been sustained with the help of falling freight rates. OCC prices climbed from US$ 185-plus per tonne at the start of the third quarter to US$ 195-plus by its close, while mixed paper values remained around US$ 160 during the same period. There have been some recent signs of softening prices as certain mills in China have focused more on using cheaper domestic secondary fibre supplies, but it is believed this may be 'a short-term phenomenon' given generally low inventories.

The UK has also reported a spike in demand for multigrade throughout September, 'driven largely by India re-entering the market and very low domestic arisings'. Germany also reported growing demand for the middle grades, including multigrade.

Recovered paper collection volumes remain a concern in most European countries. In France, for example, domestic volumes were 'very poor' in August and activity remained 'below expectations' in September against a backdrop of good demand from paper mills, whose order books are said to be well-filled. The same message comes from Germany: collection volumes remained low in September whereas demand from the paper industry has continued at a high level.

In Spain, recovered fibre exports plummeted 21% in the first half of this year whereas imports increased by 10% - an 'enormous' imbalance credited to a combination of 'low domestic consumption generating scarce volumes of recovered paper' and high production levels at paper mills. Collection tonnages have been falling too in Italy where paper mills' financial situation continues to be described as 'tight'.

In the Czech Republic, fibre collections have suffered a modest year-to-date decline of around 22 000 tons and stocks are described as 'short'. Collections in Finland, meanwhile, suffered their traditional decline in the summer - 'but this time the drop was steeper than normal'. Fibre collection rates dropped in Turkey during the third quarter, prompting an increase in prices. Mills are said to be running with low stock levels.

Domestic kraftliner mills in Sweden are continuing to run with healthy order books and are set to operate at full capacity over the coming months - conditions that will boost sales of OCC. Following closures earlier in 2013, the country’s remaining newsprint mills are witnessing improved conditions; however, with consumer demand 'continuing to evaporate', further closures are deemed likely in the near future.

Courtesy: Bureau of International Recycling