Increasing environmental awareness is helping to boost recovered paper collection volumes in Asia, with some countries even considering legislation to induce higher collection rates. As a result, exporters to the region “really need to focus on quality” if they want to sustain their volumes, Bureau of International Recycling paper division president, Ranjit Baxi of U.K.-based J&H Sales International told those in attendance at the paper round table and trading session during the BIR World Recycling Convention in Brussels Oct. 26.
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| Bill Moore, Moore & Associates, notes that OCC prices could dip over the next several quarters. |
In this context, he warned that overall recovered paper quality standards in Europe have not been as high this year as in previous years. At the same time, the continent has appeared to lose import market share in China, principally to Japan, Baxi said. He predicted that, from all sources, China will import around 24 million metric tons of recovered paper this year compared to more than 27.6 million metric tons in 2009 and 24.15 million metric tons in 2008.
In providing a summary of the European market, David Symmers of The Recycling Association in the U.K. reported that most countries are witnessing “good” mill demand, but “weak” collection volumes - particularly among the mechanical deink and woodfree grades. Recovered paper supply has been more stable in Germany, but new mill capacity to the east has continued to apply upward pressure on prices, he added.
Lower-than-normal generation was also reported for the United States by Michael Moulton of Koch Pulp and Paper Trading LLC. Domestic OCC (old corrugated container) prices have been exceeding historical averages, he added.
Reporting on European Recovered Paper Association affairs, the body’s president, Merja Helander of Lassila & Tikanoja Plc in Finland noted that the process to determine end-of-waste criteria for recovered paper “should be finalized by the end of 2011”. She also pointed out that Europe achieved a world record paper recycling rate of 72.2 percent in 2009 as collected volumes fell 3.2 percent to 58 million metric tons.
Among a number of guest presentations to the BIR paper division round table in Brussels, Bill Moore, president of Moore & Associates, predicted that OCC prices will decline within the next six months. Independent consultant Ilpo Ervasti of Finland highlighted the impact on the OCC market of China’s block approach to buying or not buying. “China acts like a company,” he contended.
Proposed legislative changes in Germany could lead to private recovered paper firms losing business to community-owned companies, warned Hubert Neuhaus of Neuhaus Handels GmbH. And it was suggested by Peter Hall, managing director of APL Liner Shipping in the U.K. and Ireland, that freight rates will remain under pressure for the remainder of the year and are likely to be “subdued” in 2011.