Page 93 from: April 2008

whites gaining ground following the
upturn in pulp prices. In line with
all other grades, generation has
been particularly slow.

North America
Hectic and frustrating

Conditions in the North American
paper recycling markets are hectic,
confusing and frustrating at the pre-
sent time, thanks mainly to the on-go-
ing shortage of containers for exports
of paper. This scarcity of containers
applies to all regions of the USA – in-
cluding the middle of the country as
well as the east and west coasts.

The reasons behind this shortage
are many. For example, smaller vol-
umes of finished product and there-
fore fewer containers are returning
from China at this time of the year.
And with the US dollar at such a low
value on the international ex-
changes, other products are provid-
ing shippers with greater revenues
compared to recovered paper and
are therefore receiving priority.

Owing to a shortage of ships, the
shipping lines are also turning to the
use of smaller vessels.

Traders are complaining of two- or
three-week delays before their mater-
ial is shipped from the ports – delays
which are costing them a lot of mon-
ey. This has led Chinese buyers to
turn to Japan, New Zealand and, in
some cases, Europe for supplies be-
cause these can be shipped more
quickly. ‘The situation is the worst we
have witnessed in North America for
the past 20 years,’ according to one
trader.

As a result of these conditions,
prices have fallen some US$ 10-15
per tonne, notably in the case of
news, mixed papers and corrugated
(OCC). At the same time, freight
rates have increased once again to
add to paper exporters’ woes.

Domestically, all grades of recov-
ered paper are moving well and con-
ditions are reasonably stable. The
lack of containers for export has
meant that domestic mills are getting
more recycled paper than they actu-
ally need. The problem is not so seri-
ous with regard to the middle grades,
deinking grades and pulp substitutes
as these are not generated in such
high volumes as mixed papers and
OCC. Nevertheless, shipments and

prices of those grades are affected by
the container shortage too.

Experts believe the current situa-
tion could persist for several months,
perhaps until Asian manufacturers
start shipping finished goods for the
Christmas season, resulting in more
containers becoming available. In-
deed, some US paper exporters be-
lieve the shortage could last well into
the third quarter of the year.

Asia
Scant margins

Demand remains firm for the bulk
grades of recovered paper and also
for the middle grades. Meanwhile,
freight rates have remained more or
less unchanged over recent weeks.

The continuing weakness of the
US dollar has forced exporters to en-
gage in constant price negotiations
so as to protect their often scant
margins. However, there is strong
resistance among Asian buyers to
further price hikes as most of them
are struggling to implement similar
price increases on their finished
products.

There is a widespread belief that
a price peak has been reached and
that prices for OCC are tending to-
wards a gradual decline.

According to statistics carried in
the latest Paper Mirror from the BIR
world recycling organisation, China
imported some 22.6 million tonnes of
recovered paper last year. This fig-
ure represents an increase of just un-
der 3 million tonnes – or 15% – when

compared to the 2006 total. The USA
was the dominant supply force in
providing China with 10 million
tonnes of recovered paper, or 44% of
the Asian giant’s total imports. Ex-
ports to China from Europe leapt al-

most 30% last year to 7.15 million
tonnes to account for 32% of the
country’s import total. With massive
new capacity expansions already an-
nounced for this year, notably by
Nine Dragons, demand from the Chi-
nese market is expected to remain
strong for the foreseeable future.

Demand from other Asian coun-
tries – including India, Thailand, In-
donesia and Vietnam – has also con-
tinued to climb, it was also noted in
the BIR Paper Mirror.

M A R K E T A N A L Y S I S

Contributing to the
Recovered Paper Market
Analysis:

* Dick de Groot (Van Gelder
Recycling, The Netherlands)

* Marielle Gommans
(Bel Fibres, Belgium)

* Steve Vento (Tidewater Fibre
Corp., USA)

Recycling International • April 2008 93

INGEDE slams ‘undeinkable’ print products
Publishers investing in equipment to produce inkjet-printed news

and direct mail run the risk of heading the industry into ‘an ecological
dead end’. The warning comes from INGEDE, the association of leading
European paper manufacturers formed to promote the utilisation of
recovered graphic paper (newsprint, magazines and office paper) and to
improve the conditions for extended use of recovered paper for the pro-
duction of graphic and hygiene papers.

Inkjet prints cannot be recycled for new newsprint or copying paper
in the same way as old newspapers or magazines, the organisation
explains. The ink cannot be removed during the recycling process and
creates a darker shade on new paper. Latest developments at some
printer manufacturers ‘pose a danger to the paper recycling cycle’ in
that direct mail or newspapers printed with inkjet ‘acts like a sponge
full of ink’, says INGEDE. ‘Even in small amounts, this kind of printed
product can cause the system of graphic paper recycling to collapse.’

INGEDE’s Press Officer Axel Fischer warns: ‘Even a single publisher
investing in this kind of equipment could severely harm paper recy-
cling all over Europe. Today, when climate protection has top political
priority, undeinkable print products are a gross aberration.’

Over the last couple of years, INGEDE has been investigating this
problem in concert with printer manufacturers and other members of
the paper chain – ‘but without any success yet’, the organisation states.
Worryingly, it adds, there is now evidence that some printer manufac-
turers who had previously focused on dry toners with their excellent
recycling characteristics are now also offering inkjet systems and ‘blam-
ing market requirements for this move’.

INGEDE is planning an intensive information campaign in the early
summer ‘to make clear that inkjet printed news and direct mail do not
fit into the higher-grade paper recycling system’. Mr Fischer adds: ‘That
is why possibly this kind of printed product has to be clearly marked as
“not recyclable”.’

RI_049 MA Paper:MA Paper 03-04-2008 15:28 Pagina 93