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A Dynamic Market

Departments - Editor's Letter

Lisa McKenna September 10, 2013
 

Lisa McKenna

 

The market for recovered fibre is undergoing some amount of change. Collectors and processors of recovered paper are placing a new emphasis on quality in light of Operation Green Fence. These quality control adjustments are adding operational costs, traders and brokers say, and so far it appears these costs haven’t been fully passed along to buyers. Even so, the improving level of quality is apparently sought after by consumers, helping to promote what traders have described as a strengthening market. Whether these changes are destined to be short-lived or permanent remains to be seen. Either way, there can be no doubt that the recovered paper industry is experiencing change.

This month’s cover profile, which begins on page 22, provides a look at the growing containerboard maker and recycling company SAICA, based in Zargoza, Spain. The company’s president, Ramón Alejandro, discusses how SAICA has integrated its three major divisions and how that strategy is being implemented in one of the company’s newest production facilities in the United Kingdom. Thanks to a mission focusing on one of the strongest commodities in the industry—containerboard paper—SAICA has been able to navigate the turbulent waters witnessed in other fibre and secondary commodities markets over the past few years.

The recovered fibre industry itself comes under the spotlight in this month’s commodity focus, “Recovered Gains,” which begins on page 26. In recent months, suppliers of recovered paper have lamented dropping volumes of some grades (i.e., old newspapers and sorted office paper); but, at the same time, they are expressing hope when it comes to old corrugated containers (OCC). Demand for this grade looks to be strong at the moment, and many predictions are positive. But brokers also refer to what may be shifting geographies in terms of recovered fibre flows.

These feature stories as well as our Global Commodity Report on Paper (page 12) should help shed light on the changing recovered fibre industry.

And, there’s much more where that came from: On 30 and 31 Oct., the Recycling Today Media Group in partnership with Smithers Pira are proud to present Paper Recycling Conference Europe in beautiful and historic Warsaw, Poland. The hallmark of this event: outstanding representation by some of the most admired and respected members of both the consuming and supply sides of the industry. As it has for more than 10 years, this conference and trade show promises to offer a comprehensive look at the changing recovered fibre markets, answers to many of your questions and plenty of networking opportunities. For additional details on the event, please visit www.PaperRecyclingEurope.com. We hope to see you there!

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