China Considers Total Ban on Recovered Fiber Imports

SEATTLE (Scrap Monster): As per indications by Chinese government authorities during their recent meeting with leading paper companies, the country plans to soon impose total ban on imports of recovered fiber.

The imports of OCC and almost all other paper grades will be prohibited in 2021. However, newsprint grades used for newspaper production will be exempted from the all-out fiber import ban.

According to China Paper Association, the country is likely to substantially reduce import permits in 2020. The permits will be completely eliminated in 2021. The companies anticipate lower import license volumes during Q4 this year. The Chinese Customs data indicate that the country imported roughly 31.4 million short tons of recovered fiber in 2016, before the country’s import ban. In the first ten months of the current year, just around 9.8 million short tons have been imported into the country.

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The major paper manufacturers in the country are seen investing in processing facilities across Southeast countries, to counter the shortage of recovered fiber on account of a potential ban. They intend to process raw recovered fiber in these facilities and ship the finished pulp into the country, which will be used in fiber products. In addition, the companies will also have to strengthen their domestic purchasing mechanisms.

Courtesy: www.resource-recycling.com