Recovered paper export from the EU and North America hits peak

SEATTLE (Scrap Monster): According to experts at the 2015 RISI China International Recycled Fiber Conference held recently in China, the Chinese paper packaging sector is expected to grow in the near future. However, the country’s scrap paper imports from the EU and North American region in unlikely to improve further as exports from these regions have already peaked.

According to Marc-Antoine Belthé of Veolia Environnement SA, collection of recovered paper in the EU region now seems to have stabilized, after posting sharp decline during the period between 2010 and 2013. The recovered paper volume currently stands at a stable rate of 62 million metric tons per year. The region’s old corrugated collection rate is estimated to be around 127% and is unlikely to post further improvement.

The expansion of waste-to-energy (WtE) sector in Europe may further limit the supply of recovered fiber to China, noted Belthé. The sector which started in the northern region is seen rapidly expanding to central and southern regions as well. He also noted that EU recovered paper quality is already in a stable state and may even improve from current levels. With regards to pricing, rates for grades beyond OCC are already very high, said Belthé.

Bill Moore of Moore & Associates, while making his presentation on scrap paper market conditions in North America, noted that exports from the region currently are at their peaks. Higher costs of recovery may put additional burden on exports from the region.

According to Moore, the Green Fence regulations by Chinese administration in 2013 have led to significant improvement in the quality of recovered paper in the US. However, single stream MRFs still are not freed from high contamination rates. Moore also noted that US consumption of scrap paper has grown significantly from 26.4 million tons in 2008 to 27.9 million tons in 2014. North American paper making capacity has reduced by nearly 24 million tons during the past 15 years, added Moore.

The 2015 RISI China International Recycled Fiber Conference was held Dec. 2-4 at the JW Marriott Hotel in Shenzhen, China.