Paper Recycling Conference: Exporting with Confidence

When it comes to accessing the recovered fiber industry’s lucrative export markets, most problems occur from miscommunication or lack of communication, according to Bill Schlenger of Worldwide Fibers LLC, who spoke on the topic of exporting at the Paper Recycling Conference & Trade Show held in early June.

Distance makes clear communication a vital part of exporting successfully, Schlenger said. In domestic sales, “if you have a problem, you resolve it or you can move [material] to a packer nearby,” he said. However, if a recycler is exporting, the far away destination means “there’s not a lot of friends around to buy your distressed tons.”

Schlenger advised exporters to first and foremost work with someone they know and trust. He said to also communicate anything unique about the material being sold, for instance, if it had been stored outside. “Make sure they buyer knows what he’s getting,” Schlenger said. He also recommended taking photos of all shipments, which is also a requirement for shipping to China.

Schlenger added that China is the area to watch when it comes to export, as the booming country is investing some $54 billion in port development and infrastructure in the next decade. “The growth is like nothing we’ve seen in our lifetimes,” he said.

In addition to China, Schlenger added that India is also on the rise. New paper machines are starting up and demand is growing, he said, adding that 2007 import volumes are projected to be between 1.2 and 1.5 million tons.

Mike Belus of Harmon Associates echoed Schlenger’s comments on China’s growing supremacy in the recovered fiber market. “The reality is China has a significant impact on the domestic market,” he said. In 2006, 10 million of the 17 million tons shipped worldwide went to China, he said. “It’s incredibly dominant,” added Belus.

China’s dominance is an opportunity and also a challenge, he said, as Chinese mills are starting to set up buying arms in the United States.

Belus also cited Korea and South America as vibrant, growing markets for recovered fiber.

The Paper Recycling Conference & Trade Show was held June 10-12 at the Peabody Hotel in Orlando. More information is available at www.RecyclingTodayEvents.com.