Page 47 from: April 2013

47April 2013

Paper

the authorities rather than the paper
mills appear to be the ones deciding
whether a shipment passes the quality
test.

CEPI-zone production drops 1.7% in 2012
Paper and board production across member countries of the Confederation
of European Paper Industries (CEPI) slid some 1.7% lower last year while
consumption of paper for recycling is believed to have fallen 1-1.5%.
Output of paper and board among the 17 EU states plus Norway is thought
to have totalled around 92 million tonnes, with closures amounting to 2
million tonnes and new capacities or upgrading of existing ones accounting
for close to 1 million tonnes, according to CEPI’s preliminary assessments.
Paper and board deliveries for the year fell by over 2% when compared to
2011 while overall consumption of paper and board in CEPI countries is
believed to have declined by between 4% and 5% last year.
CEPI represents companies which together are responsible for around a
quarter of world paper and board production.
Staying in Europe, latest figures reveal that the UK – the continent’s leading recov-
ered fibre exporter in volume terms – shipped almost 70% of its total overseas
deliveries to China last year (3.13 million tonnes out of 4.491 million tonnes). Asia
as a whole accounted for some 3.755 million tonnes, or more than 83% of the UK
export total, despite a significant reduction in shipments to Indonesia (-9% to
328 332 tonnes) and to India (-22% to 194 112 tonnes).

At the time of writing, it has yet to be
clarified whether the new ‘Green
Fence’ regulations in China are the
direct cause of the downward pricing
trend and reduced demand. This ‘Green
Fence’ programme is an attempt by
China to protect its environment by
keeping out undesirable materials sent
with recovered paper as well as plastics
and metals. Owing to the greater scru-
tiny of recyclables at Chinese ports,
shipping containers are taking longer
to clear customs.
DLK cuttings are still moving fairly well
on the back of lower generation and
continuing buying pressure. Woodfree
deinking grades and pulp substitutes
are holding at the present time.
There were some ocean freight rate
increases in March and those levels
have been holding in April.
Latest Census Bureau figures have
revealed that, in January, US recovered
paper export volumes slid 4% year on
year to slightly more than 1.9 million
short tons, with shipments to China
dropping 7% to 1.3 million short tons.
Export revenues fell by an even steep-
er 8.6% to US$ 283 million; business
with China amounted to US$ 177 mil-
lion for a drop of 14% compared to

January last year, followed by Mexico
on US$ 21 million (+33%), India also
on US$ 21 million (-19%) and South
Korea on US$ 19 million (+21%).

Asia
Huge costs
March was a reasonably good month
for exports to China. Although the
country’s quality checks are becoming
ever stricter, there has been no nega-
tive impact on demand as yet. OCC
values increased by US$ 20 per tonne
in the latter part of the first quarter but
hesitation appears to surround price
movements for April amid suggestions
that demand could be weakening.
However, low collection volumes are
likely to ensure that prices do not
decline.
Demand for the middle and higher
grades of recovered paper are slowly
improving, resulting in slightly
increased prices.
Numerous exporters are facing deten-
tion and demurrage claims in China
owing to the 100% inspection clamp-
down. Several Dutch collectors/export-
ers have been forced to take back
containers or to switch their destina-
tion to Taiwan in order to avoid the

huge costs attached to bringing con-
signments back home.
Specifically for SMP, China appears to
be emerging as a risky outlet because

Contributing to the Recovered Paper Market Analysis:
• Melvin de Groot (Van Gelder Recycling, the Netherlands)
• Mariëlle Gommans (Bel Fibres, Belgium)
• Steve Vento (Vipa Lausanne SA, Switzerland)

RI_3_Paper&Textiles.indd 47 08-04-13 15:57