China is increasingly reducing its dependence on i

2022-08-16
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China is increasingly reducing its dependence on imported waste paper

since the beginning of 2018, the change of China's import waste paper policy has affected the growth of local corrugated paper packaging. At the same time, it also affected the global trade flow of waste paper, and the export destination countries moved from China to India and Southeast Asia

2 industry: the ban on imported waste paper that may be implemented by the end of 2020 will have a new impact on the paper industry. The ban on imported waste paper will increase the demand for domestic waste paper and encourage companies in the industry to strengthen the recycling of domestic paper industry. In order to obtain a stable supply of fiber raw materials at home and abroad, China's packaging enterprises are very active in various industrial chain links of pulp, paper forming and recycling

the latest research report of Rabobank entitled "the uncertain prospect of China's waste paper market" analyzes the impact of China's waste paper policy on the market and enterprise strategies

The report points out that China is constantly reducing its dependence on imported waste paper, and China's paper packaging companies are actively adopting various strategies to ensure a stable supply of fiber raw materials at home and abroad

in view of the impact of China's waste paper policy on the market, the report points out that in the past few years, China's waste paper policy has caused shocks in the international waste paper, paper packaging and recycling market

the comprehensive import ban of solid waste that may be implemented by the end of 2020 will cause a new round of shocks. In addition, the Sino US trade friction in 2018 also brought challenges to the global market

Natasha valeeva, senior agricultural food industry chain analyst of Rabobank, said:

"These shocks will increase the demand for domestic waste paper, and encourage companies in the industry to strengthen the domestic paper industry. The hydraulic universal experimental machine produced by Sida high-tech adopts the industrial regeneration cycle of full digital closed-loop control system. However, the supply of waste paper will still be insufficient in the short term. Imported recycled pulp and container board will continue to fill the current gap of recycled paper."

the report also pointed out that the waste paper trade flow will continue to be restructured through more than 20 years of development and construction. Since 2016, the import quota of waste paper has decreased at an annual rate of 30%

"considering that China will 'permanently ban the import of solid waste' by the end of 2020, we believe that this trend will continue.". Wan Hui, an analyst of the food and agriculture industry chain of Rabobank Shanghai Branch, said

the report said that due to the continuous reduction of waste paper import quota, China's major producers are increasingly dependent on domestic waste paper supply. Therefore, the domestic waste paper price increases, causing short-term profit pressure. At the same time, it also inspires domestic enterprises to continue to develop the supply of waste paper. This has a positive effect on the ecological environment

Valeeva said, "China's import ban forces waste paper exporting countries such as the United States and Europe to try to absorb the excess export volume at home. Due to the limited growth opportunities in new markets, these countries need to increase investment in innovative 'high-quality' recycling infrastructure."

The report also points out that China is increasingly reducing its dependence on imported waste paper. "In China, recycling has become a new focus of the supply chain. Recycling enterprises are actively cooperating with the government to develop a nationwide recycling system. Especially downstream enterprises are more focused on strengthening recycling business."

According to Wan Hui, "with these supports, local enterprises are expected to increase their waste paper market share by% every year in 2019 and 2020. In order to cope with market changes,

China's paper-making enterprises are actively adopting various short-term and long-term strategies. They actively intervene in the pulp, paper forming and recycling industry chain in China and abroad to ensure the supply of fiber raw materials. This also has a certain impact on overseas markets."

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