BIR Cited Boosted Demand for Recovered Paper

The sudden spike in orders for online delivery through various platforms including Amazon has boosted the demand for packaging.

SEATTLE (Scrap Monster):  The Covid-19 pandemic has resulted in boosted demand for recovered paper, said the latest report published by the Bureau of International Recycling (BIR).

According to Jean-Luc Petithuguenin, president of the BIR’s recovered paper division, the supply of recovered paper continued to remain constrained during these tough times. This in turn has led to significant jump in recovered paper prices. The pent-up demand for recovered paper packaging products in several countries has given rise to sharp jump in export demand. Meantime, collection rates continued to remain subdued in many European countries. The acute shortage of the material has badly impacted tissue sector, he added.

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The sudden spike in orders for online delivery through various platforms including Amazon has boosted the demand for packaging. Along with packaging, tissue sector has also seen notable jump in demand, especially from medical sector.

The tremendous rise in sea freight rates has caused disruption to export trade. Over the past three-month period, the rates have skyrocketed by as much as 200%. As per current estimates, the Chinese recovered fiber exports are likely to drop by 50% from 10.3 million tonnes in 20019 to around 5 million tonnes in 2020.

Meantime, domestic OCC prices have reported significant increase in China, the UK and the U.S. during the initial quarter of the current year, noted BIR.

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