Waste Expo Hears About Strong Upside for Recovered Fiber

Speakers bullish on offshore market for recovered fiber; less upbeat on domestic buying.

A host of recycling-related sessions the first day of Waste Expo capped the highlight for seminars for the four-day meeting.

 

During the sessions, experts touched on paper, plastics, carpeting, and electronics. While the sessions, for the most part, were well presented, the session on paper generated the greatest attendance, as well as the most in-depth analysis.

 

Speakers at the panel included Bill Moore, president of Moore & Associates; Larry Sisco, procurement manager for Abitibi-Consolidated; and Michael Peltz, with Recycle America Alliance.

 

While all three looked at issues in a slightly different way, the reality is that all three reflected on the growing roll of China in the overall market.

 

In his presentation Moore noted that the Asian, especially China, market continues to be the primary driver for the market. This area is where all the growth in paper markets are coming from.

 

In his presentation, Sisco noted that Abitibi-Consolidated continues to see an upbeat market for recovered fiber, although strong demand is coming from the China market

 

In his presentation, Moore noted that the difference in paper capacity between North America and Asia is significant. He noted that while the U.S. paper indsutr has lost about 6.5 million tons of capacity between 2002 and 2003, Asian paper making capacity is expected to grow by a rate of around 3.7 percent a year, with the growth in China papermaking capacity dramatic.

 

Meanwhile, the imports of recovered fiber from China reflects this swing. Over the past several years imports of paper stock to China have doubled.

 

This surge has moved China into the number 1 position as an end market for recovered fiber from the United States.

 

While many people note that China has become a major buyer of old corrugated containers, in his presentation Moore noted that twice as much mixed paper as OCC moves from the U.S. to China.

 

Michael Peltz, with Recycle America Alliance, also agreed that the China market will continue to play a key role in the growth in the paper recycling industry. In his presentation Peltz noted that exports of recovered fiber to China will continue to increase over the next five years.

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