OCC Accounted for Two-Thirds of World Recovered Paper Market
There has been a major shift in the flow of OCC out of North America. In 2016, China used to be the destination of almost three-fourths of the OCC exports from the region.
SEATTLE (Scrap Monster): The analysts and industry representatives discussed trends in global recovered paper markets during the Paper Spotlight held September 16th as part of the ISRI’s Fall Commodity Spotlight Series.
The webinar noted that recovered paper markets have undergone significant changes over the past few years, mainly due to the import policies announced by the Chinese administration in 2017 and the various changes afterwards. The market demand too has witnessed major changes. The old corrugated containers (OCC) have witnessed impressive growth, now representing approximately two-thirds of the recovered paper collections.
There has been a major shift in the flow of OCC out of North America. In 2016, China used to be the destination of almost three-fourths of the OCC exports from the region. The Chinese share dropped to two-fifths in 2019. The ban on recovered paper imports will result in zero shipment to China next year. This essentially means that the nearly 4-5 million tons of OCC shipped in 2019 will need to find new destination.
At the same time, there has been a proportionate increase in consumption of U.S.-based OCC by other Asian countries including India, Indonesia, South Korea, Malaysia, Taiwan, Thailand and Vietnam. North America will continue to remain as an important supplier to the region, said Hannah Zhao, senior economist at Fastmarkets RISI.
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