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Waste & Recycling October 20, 2017 03:30:43 PM

BIR Foresees 'Trying and Testing Times' For Recovered Paper Exports

Paul Ploumis
ScrapMonster Author
Though exports prices have declined sharply during recent times, the UK exporters have been successful in identifying new export destinations.

BIR Foresees 'Trying and Testing Times' For Recovered Paper Exports

SEATTLE (Scrap Monster): The latest edition of ‘World Mirror on Recovered Paper’ published by the Bureau of International Recycling (BIR) states that proposed ban on certain scrap categories by the Chinese administration by end-2017 is likely to impact global trade of recyclables. The consultation document made available by China Certification & Inspection Group (CCIC) had earlier noted that the Chinese administration plans to reduce the allowed contamination level on imports of baled scrap paper from current level of 1.5% to 0.3%.

The exporters of recovered fibre have expressed deep concerns over China’s proposed plan to reduce acceptable contamination levels. According to them, the contamination level of 0.3% is clearly unrealistic. The present contamination level provides correct balance, they said. On top of that, the much feared 25% cut in import allocation by Chinese mills are likely to make 2018 a very testing and trying year for fibre exporters, BIR noted.

According to UK-based Waste and Resources Action Programme (WRAP), it would be extremely challenging for exporters to meet the proposed contamination level with the systems they have in place now. This calls for fresh investments aimed at quality improvements at recycling facilities. Furthermore, UK authorities will have to decide upon the effectiveness of single stream collection systems.

The BIR Mirror on Recovered Paper noted that the tough restriction by Chinese administration to improve the quality of recyclables sent to that country by world nations has prompted exporters to look to new markets. Of late, exports to Turkey and other Southeast Asian countries have witnessed notable increase. As per estimates, Turkey is believed to be importing an average of around 700,000 tonnes of recovered fibre every month. Though exports prices have declined sharply during recent times, the UK exporters have been successful in identifying new export destinations. However, mixed papers enjoy extremely limited market outside China.

The shrinking supplies of recovered paper raw material have led to sudden surge in prices of finished paper. The prices have almost doubled to more than Yuan 6,000 per ton, sources said. The sudden jump in prices has badly impacted all consumers, especially the e-commerce sites which use significant quantities of paper packaging for shipping products.

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