Page 38 from: November 2007

Recovered paper exporters have not had theirtroubles to seek in recent weeks and months,
including low generation levels during the summer
months, a more volatile US dollar, and the impact of
rising oil prices. And on top of all these factors,
European companies shipping material to Asia have
been confronted with massive freight rate increases.
All in all, ‘exporting is a rather difficult task at the
present time’, delegates were assured by Ranjit Baxi.

At the meeting in Warsaw, Mr Baxi became the
first person of Asian descent to assume the role of
President of a BIR Division. His family originated in
India although Mr Baxi spent his early years in
Tanzania before moving to the UK to study. He is
Managing Director of J & H Sales International Ltd
of Wanstead near London – a business specialising
in exporting recovered fibre from Europe and the
USA to destinations in Asia, including India and
China. In his acceptance speech in Warsaw, Mr Baxi
made clear his desire to carry the BIR message to as
many people as possible, particularly in Asia.

It was the export trade with Asia – and China in
particular – on which Mr Baxi chose to dwell in his
presentation. The costs of shipping recovered paper
from Europe to the main Asian ports had risen by an
average of US$ 600 per 40-foot container on October
1, while the increase for trans-shipment ports was
nearer US$ 850-900 per box, he suggested. Further
BAF increases were anticipated for November and
December, he added.

Casting a shadow

These increases have cast a shadow over trade
between Europe and a burgeoning Asian market.
Focusing on China, Mr Baxi noted that the Asian
giant had imported a grand total of 15.64 million
tonnes of recovered fibre in the first eight months of
2007 compared to 19.6 million tonnes in the whole of

2006. For the January-August 2007 period, more
than 42% (6.67 million tonnes) had been supplied by
North America and almost 33% (5.16 million tonnes)
by Europe. The UK remained the run-away leader
in terms of EU exporters to China with shipments
totalling more than 1.4 million tonnes in the first half
of 2007; in second place was the Netherlands on 880
000 tonnes. Mr Baxi went on to identify Poland and
Norway among the emerging suppliers to China.

Returning to the global picture, Mr Baxi reported
that just over 21% (3.31 million tonnes) of China’s
imports in January-August 2007 had been supplied
by fellow Asian nations. Japan constituted ‘a major
player’ in the Asian market, having shipped slightly
more than 2 million tonnes to other countries in the
region during the first half of 2007, including almost
1.7 million tonnes to China. Meanwhile, the decision
by the Taiwanese government to ban exports of
recovered fibre with effect from August 1 this year
would deprive China of more than 50 000 tonnes of
annual supply from this source and would create
opportunities for other exporting nations, he noted.

The Oceania region including Australia and
New Zealand supplied a further 3.2% – or approach-
ing 500 000 tonnes – of China’s recovered paper
imports during the first eight months of this year.
Africa’s share had been a ‘negligible’ 0.02% but, hav-

Paper

Recycling International • November 2007 38

Given the pressure on the paper- and board-making industries back

home, Europe’s recovered fibre exporters have been glad of the

emergence of a thriving alternative outlet for their material, namely

the ever-growing Asian market. However, as the BIR Paper Division’s

new President pointed out in Warsaw, massive freight rate increas-

es are proving one of a number of stumbling blocks at present.

The costs of shipping recovered paper from Europe to the main Asian
ports has risen by an average of US$ 600 per 40-foot container on
October 1, while the increase for trans-shipment ports was nearer
US$ 850-900 per box.

In Warsaw, Ranjit Baxi of UK-based J & H Sales
International (left) was elected as BIR’s new
Paper Division President. To his right,
…………….. of
……………………………………………

Michael Kuehl, President of the European
Recovered Paper Association (ERPA).

New President rues freight h

By Ian Martin

B I R W A R S A W

RI_038 BIR-Paper:Opmaak 1 08-11-2007 16:14 Pagina 38