Packaging is the future of paper and quality continues to be key, that’s according to speakers in the “Export and Global Markets” session at the 2015 Paper & Plastics Recycling Conference, hosted by the Recycling Today Media Group Oct. 14-16 in Chicago.
Rogelio Silva, director Latin America, Continental Paper Grading, headquartered in Chicago, and a panelist in the export session, said Mexico relies on secondary paper. Continental Paper is one of the largest independent scrap paper brokers in North America, Silva said, and handles more than 1.2 million tons of secondary fiber, including preconsumer and postconsumer; high and low grades; rolls and bales; and pulp.
“The biggest grade is packaging at 59 percent,” Silva said in regard to Mexico.
Silva predicted that packaging is the future of paper and projected to the audience, “Everything will be in a box.”
Silva noted that 74 percent of the recovered paper grades available in Mexico are domestic while 26 percent is imported. When he started his position at Continental Paper Grading three years ago, Silva said 75 percent of the fiber in Mexico was imported from the United States. “The recovery rate will continue to go up,” Silva said, adding, “Domestic production is increasing.”
In 2013, Mexico imported 2.1 million tons of secondary paper and exported 207 tons, Silva said. Ninety-five percent of the paper entering Mexico does so by rail or truck, Silva said. Demand is strong for transportation, he said, he anticipates rates to increase for both rail and truck.
On the other side of the world, China’s demand for old corrugated containers (OCC) will be steady, despite concerns in that country, said Steve Sutta, president of Sutta Co., Oakland, California.
“All the way through you have these issues with China,” Sutta said. “China is opaque.”
He added, “An issue we’re facing in China comes from the fact that it’s a guided economy.”
The economy in Mexico is “very weak,” Silva said. However, this negative has turned into a positive in terms of recovered paper quality, he said. Residents collect paper from the streets of others’ containers. “That’s why Mexico’s quality of paper overall is better than [America’s]—by the time the trash truck comes to the curb, all that’s left is trash,” Silva explained.
Silva continued, “The volume of waste paper generated by single stream is very low.”
Sutta, who expressed a pessimistic view toward single-stream recycling, stated, “I hate it. The quality is terrible. We’re trying to take what was garbage 10 years ago and turning it into a negative share.”
One reason for his glum perspective of single stream is that it has resulted in “lousy” quality and depressed prices, Sutta said. He described how single stream costs are “rising so strongly” and the overall model is broken.
“That’s why Tom goes through every load,” Sutta said.
Sutta was referring to the third and final speaker in the export session, Tom De Reu, business development manager for Gemini Corp. NV, based in Belgium. De Reu had mentioned to the conference audience that every single container Gemini Corp. ships is inspected by the company’s own inspectors. Gemini ships 4,000 containers each month, with materials ranging from paper and wood to rubber and metals, De Reu said.
“Quality is always going to be difficult to talk about,” De Reu said. “Separation at the source is better … [as] who is responsible is a tricky question because there are so many people involved.”
In addition to individual people, De Reu said he is surprised to see all of the different countries involved in exports related to the recycling industry. He offered sub-Saharan Africa as an example of one area where he has been surprised to see a high level of recycling occurring.
“When you move around to different countries, you see a lot of opportunities. Adding up all the different countries that are recycling there’s a lot of opportunities,” De Reu said.
Silva agreed. “I see lots of opportunities for the paper industry in Mexico, but also the paper industry overall. I’m very, very optimistic.”
Sutta said the industry needs to work on a rational economical model. He noted that of the top 20 largest exporters in the United States, half of them are recyclers. “Opportunities are to rationalize what’s going on economically,” he said.
When asked by an audience member what advice the panelists had for an exporter entering the industry, the speakers offered the same guidance: “Know your sources and know your customers and what they need,” De Reu said.
“Knowing your sources is the only way,” Sutta said.
The 2015 Paper & Plastics Recycling Conference was at the Marriott Downtown Magnificent Mile in Chicago. Next year’s conference will be Oct. 19-21 at the same venue. More information will be available at www.RecyclingTodayEvents.com as it is confirmed.
Rogelio Silva, director Latin America, Continental Paper Grading, headquartered in Chicago, and a panelist in the export session, said Mexico relies on secondary paper. Continental Paper is one of the largest independent scrap paper brokers in North America, Silva said, and handles more than 1.2 million tons of secondary fiber, including preconsumer and postconsumer; high and low grades; rolls and bales; and pulp.
“The biggest grade is packaging at 59 percent,” Silva said in regard to Mexico.
Silva predicted that packaging is the future of paper and projected to the audience, “Everything will be in a box.”
Silva noted that 74 percent of the recovered paper grades available in Mexico are domestic while 26 percent is imported. When he started his position at Continental Paper Grading three years ago, Silva said 75 percent of the fiber in Mexico was imported from the United States. “The recovery rate will continue to go up,” Silva said, adding, “Domestic production is increasing.”
In 2013, Mexico imported 2.1 million tons of secondary paper and exported 207 tons, Silva said. Ninety-five percent of the paper entering Mexico does so by rail or truck, Silva said. Demand is strong for transportation, he said, he anticipates rates to increase for both rail and truck.
On the other side of the world, China’s demand for old corrugated containers (OCC) will be steady, despite concerns in that country, said Steve Sutta, president of Sutta Co., Oakland, California.
“All the way through you have these issues with China,” Sutta said. “China is opaque.”
He added, “An issue we’re facing in China comes from the fact that it’s a guided economy.”
The economy in Mexico is “very weak,” Silva said. However, this negative has turned into a positive in terms of recovered paper quality, he said. Residents collect paper from the streets of others’ containers. “That’s why Mexico’s quality of paper overall is better than [America’s]—by the time the trash truck comes to the curb, all that’s left is trash,” Silva explained.
Silva continued, “The volume of waste paper generated by single stream is very low.”
Sutta, who expressed a pessimistic view toward single-stream recycling, stated, “I hate it. The quality is terrible. We’re trying to take what was garbage 10 years ago and turning it into a negative share.”
One reason for his glum perspective of single stream is that it has resulted in “lousy” quality and depressed prices, Sutta said. He described how single stream costs are “rising so strongly” and the overall model is broken.
“That’s why Tom goes through every load,” Sutta said.
Sutta was referring to the third and final speaker in the export session, Tom De Reu, business development manager for Gemini Corp. NV, based in Belgium. De Reu had mentioned to the conference audience that every single container Gemini Corp. ships is inspected by the company’s own inspectors. Gemini ships 4,000 containers each month, with materials ranging from paper and wood to rubber and metals, De Reu said.
“Quality is always going to be difficult to talk about,” De Reu said. “Separation at the source is better … [as] who is responsible is a tricky question because there are so many people involved.”
In addition to individual people, De Reu said he is surprised to see all of the different countries involved in exports related to the recycling industry. He offered sub-Saharan Africa as an example of one area where he has been surprised to see a high level of recycling occurring.
“When you move around to different countries, you see a lot of opportunities. Adding up all the different countries that are recycling there’s a lot of opportunities,” De Reu said.
Silva agreed. “I see lots of opportunities for the paper industry in Mexico, but also the paper industry overall. I’m very, very optimistic.”
Sutta said the industry needs to work on a rational economical model. He noted that of the top 20 largest exporters in the United States, half of them are recyclers. “Opportunities are to rationalize what’s going on economically,” he said.
When asked by an audience member what advice the panelists had for an exporter entering the industry, the speakers offered the same guidance: “Know your sources and know your customers and what they need,” De Reu said.
“Knowing your sources is the only way,” Sutta said.
The 2015 Paper & Plastics Recycling Conference was at the Marriott Downtown Magnificent Mile in Chicago. Next year’s conference will be Oct. 19-21 at the same venue. More information will be available at www.RecyclingTodayEvents.com as it is confirmed.