Paper Recycling Industry upset by thin margins and market slowdown

SEATTLE (Scrap Monster): The Bureau of International Recycling (BIR) Paper Division meeting recently held October 28^th in Paris noted that paper recycling industry are concerned with falling margins and slowdown in key markets such as China. The excess regulations imposed by government authorities and rising demand for higher fibre-quality are the other notable challenges faced by the sector.

The meeting noted that imports of recovered fibre by China are feared to drop significantly by 12% over the year to 28m tonnes in 2014. The country had imported 31.65m tonnes of recovered fibre during the entire year 2013.

Fibre suppliers were called upon to put more efforts to ensure that consumer demands are satisfied rather than forcing mills to adapt to the fibre quality being supplied.

The fibre collection has dropped by 2.5% in the Czech Republic. The fibre collection remained extremely weak in parts of Southern Europe during this summer. Failure to build up stocks has further worsened fibre supply issues in the European market. However, Northern European region reported stable market conditions with slight growth in collection and exports, especially during the second half of the year. Increased collection has shielded chances of fibre non-availability in Swedish local mills, despite rise in exports from the region.

The convention also highlighted the need for paper sorting facilities to incorporate latest technological advances in order to maximize productivity. The facilities must change with time, the convention noted. The Paper Division also welcomed formation of the new body-EuRIC, which will serve as the umbrella organization of the European recycling industry.