President of the recovered paper division of global recycling industry Federation BIR showcased concern on the impact on the recovered paper market failing to find outlets in the current market scenario.
Jean-Luc Petithuguenin, President of the recovered paper division of the global industry federation BIR showcased concern on how the paper wastes are going to be treated in the present market scenario. He has voiced his concern to his associates about the market challenges for “difficult” waste paper markets.
On the other hand, Keith Trower, managing director of Viridor Resource Management also aloofed the sheer pressure on the paper market and the waste management process of the recovered paper market.
The main concern is on the deteriorating prices in the present marketing segment. Francisco Donoso of Alba Servicios Verdes, representative of Spain’s BIR also stated the statistics of such recovered papers are going below-the-belt. For the first time in Spain’s recycling history, there has been such a low price.
What could have been a significant reason for such a deterioration?
- As per BIR’s president, the competitive analysis has changed in the last months of 2019, leading to such decline.
- As per the latest survey in the BIR paper division, December’s collections have been mediocre. On the other end, paper mills restrained from buying from the middle of December 2019. This could be due to the slow production of the material and decrease in orders of the products.
- Mr Petithuguenin also threw light on the used cardboard market stating that not all the recovered materials were gaining their place in the market. January and February could see a drastic fall in terms of collections, which could be a boon to the stock market.
- On the other hand, little enhancement in international demand and prices could also be taken into consideration.
- The news states that China is back in the market for recovered paper waste, purchasing from the USA at higher prices resulting in an impact on the European prices for South-East Asian countries. The used paper waste market is deteriorating due to the lack of outlets.
What is in store for the rest of 2020?
Mr Petithuguenin states the situation is uncanny. Such a lower price in the European market could pose for the reduction of the recovered paper waste. Packaging might transform from plastic to paper or cardboard.
Reinhold Schmidt, an associate of the Karla Schmidt business stated in the BIR report that the waste management industry will now be forced for additional payments for such lower grades. It is a technique in the form of compensation to cover the “cost collection, formulation and conditioning”
Again in Germany, recovered paper prices got reduced by a double-digit in European money, covering the lower, middle and higher grades as a whole. As for the future, paper mills would be purchasing more of the materials at market prices.
Condition of Indian Market
Ranjit Baxi, former president of BIR and UK’s J&H Sales International Ltd quoted that Indian customs officers have ventured into such import controls, reviewing all the paper containers arriving at Mundra port.
During the inspection process, if the fibre is poor or has been blended with other forms of waste, the containers will be directly re-exported. The process is slow and steady where nearly 700 containers need full clearance.
Exporters are waiting for a new idea post the Chinese New year. There could be relative announcements of the export of recycled waste fibres that will not enter China from 1st January 2021. Not only this, but Ranjit Baxi also quoted Coronavirus to create a heavy impact. As the virus has become a Global Health Emergency by the WHO, it could highly affect the country and its global GDP in 2020.