Chinese Paper Import Restrictions Hit U.K. Recovered Paper Markets

 

The Chinese paper import restrictions are having a now global effect felt across the industry is potentially directly impacting the U.K.'s recycling exports to what will now be as much as EUR 480 million, according to a recently published (Aug. 2018) study by Rabobank (Utrecht, Netherlands).

The study reported that U.K. businesses have been looking to China and have already established a market to buy and recycle their paper waste / recovered paper, generating valuable revenues which this year have been lost.

Rabobank recorded statistics of approximately 90% of U.K OCC and 67% of mixed paper exports went to China in the year 2016. These high numbers are significant in that they put the U.K. on the map as the most exposed country to the new restrictions by some margin, and now, with little if any sign of the Chinese import decisions changing in the immediate future (such as before the end of this year), the U.K. recovered P&P industry and market chain could find itself posting very disappointing numbers for 2018 and possibly into 2019 and beyond. 

The problems may continue at least until the market can begin to correct itself due to what's only considered a displacement in shipment and revenue streams and not a lack of demand, but that will start with the acknowledgement that the situation with China is an indefinite displacement that the industry can no longer realistically expect to either change or not affect them as predicted in their exposure, such as is the case with the U.K. 

In Western European nations such as the U.K., the need for a healthy and functioning recovered paper industry and market to serve large regions and cities such as London is essential as ever-increasing globally relevant sustainability measures and recycling emphasis remains in focus within Europe / the U.K.