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Paper Recycling April 09, 2018 12:30:22 PM

New Report Analyzes Market Impacts of Chinese Scrap Import Restrictions

Paul Ploumis
ScrapMonster Author
According to APCO report, the imposition of Chinese restrictions has virtually ceased the sale of scrap plastics to China.

New Report Analyzes Market Impacts of Chinese Scrap Import Restrictions

SEATTLE (Scrap Monster): The Australian Packaging Covenant Organization (APCO) has released the results of a new study, which focuses on the market impacts on account of import restrictions imposed by the Chinese administration as part of their National Sword policy initiative. Incidentally, China had recently limited the contamination threshold requirement to scrap paper and scrap plastics to no more than 0.5% impurities. The rationale behind the decision was to minimize the environmental and human impacts caused by mixing of dirty and hazardous materials along with imported solid waste into the country.

According to APCO report, the imposition of Chinese restrictions has virtually ceased the sale of scrap plastics to China. In addition, the value of scrap paper and cardboard has dropped significantly. For instance, Australia had exported nearly 71% of scrap paper and scrap plastics to China in January last year. However, the share of exports to China by the country fell drastically to 34% in January this year. Also, the volume of exports has more than haled over the year from 98,300 tonnes in January 2017 to 43,200 tonnes in January this year.

ALSO READ: Chinese Customs Seized 110,000 Tonnes of Illegal Waste So Far This Year

The saturation of certain types of scrap paper and plastics in the international market has led to significant price falls in the value of these commodities. The prices of scrap mixed plastics have fallen sharply from $325 per tonne to $75 per tonne over the past 12 years. At the same time, OCC prices too have fallen from $210 per tonne to $125 per tonne. The report also states that mixed paper scrap has become almost worthless over the period. The drastic decline in prices of these commodities has badly impacted recycling industry participants and the kerbside recycling industry in general.

Meantime, the report also states that Australia’s exports of scrap paper and scrap plastics remained stable over the past one year, mainly due to other countries absorbing much of the shipments, however, at much reduced values.

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