BIR CONVENTION: Feeding the Paper Dragon

As the manufacturing sector continues to boom in China, record amounts of recovered fiber are being exported there to help produce the nation’s hunger for boxboard and other paper.

A presentation by Ranjit Baxi of J&H Sales International Ltd., London, at the Paper Division meeting of the Spring 2006 Bureau of International Recycling (BIR) Convention detailed the jostling for Chinese scrap paper market share that is taking place.

In 2005, Western European shippers picked up an additional 5 percent of market share, gained at the expense of North American exporters. But North America remained the number one exporter of recovered fiber to China, with its nearly 7.5 million metric tons representing 44 percent of the market.

But last year, Europe sent nearly 5 million metric tons, for 27 percent share, up significantly compared to the 2.7 million metric tons Europe shipped in 2004. Japan and Hong Kong have held steady with a combined 23 percent market share, but the overall growth of Chinese demand still meant that an additional 1 million metric tons flowed from there.

According to figures gathered by Baxi, thus far in 2006 North American shippers have regained some market in what is proving to be yet another record year for paper making in China.

More good news for recyclers and exporters is expected to arrive in the form of lower freight rates throughout the rest of this decade as a significant amount of new ocean-going vessel capacity will be put into place during the next four years.

Exporters to India may need to pay attention to new maximum container weights being issued by authorities in the Mumbai area, who are responding to damaged roads caused by heavy trucks leaving the port area, according to Baxi.

Market reports given by European delegates to the BIR Paper Division described mill closures in nations such as France and Finland, but with overall demand remaining firm because of the export market.

David Symmers of the United Kingdom’s Independent Waste Paper Processors Association noted that the U.K. is likely to export more fiber than it consumes domestically either this year or next.

The BIR Spring 2006 Convention was held at the China World Hotel in Beijing May 29-31.