UK recovered paper exports outstrip domestic use

It is the first time ever that exports of recovered paper have surpassed the UK mill usage, the Confederation of Paper Industries said today.

Monthly recovered paper usage Source: CPI

As the new figures were released, the CPI warned that the UK's rising recycling rates now heavily depend on the world market for waste paper. And, with other countries also collecting more waste paper, competition is hotting up.

This, the CPI said, will mean the UK will have to ensure its collected paper is of high quality to guarantee a market for it, and to underpin future rises in recycling rates.

Figures
Exports of recovered paper in June 2006 reached 343,000 tonnes, compared to 332,000 tonnes used by domestic paper mills. July saw exports remaining at 343,000 tonnes for the month, and despite a slight increase in use by UK mills to 339,000 tonnes, exports remained higher than domestic use.

The Far East remains the main export destination – representing 75% of British waste paper exports – with China alone accounting for half of waste paper exports.

The CPI said the figures reflected the “continued decline in UK paper and board manufacturing”, but also noted a “slight increase in UK collection”.

Although the UK leads Europe on the use of recovered fibre in paper and cardboard made in this country, because so many finished paper and board products are imported, it has one of the lowest utilisation rates for its own waste paper in Europe.

Although 75% of all the paper and board made in the UK is now from recycled fibres, the fact that the UK buys in more finished paper products from abroad than from domestic mills means only 36.1% of UK waste paper is recycled in this country. This compares against a 54.6% European average.

Competition
Peter Seggie, the CPI's recovered paper sector manager, said the increasing dependence on exports for the recovery of waste paper meant the UK's rising recycling rates now depend much more on competing against other countries in the world market.

With the rest of Europe also pushing for EU-set landfill diversion and packaging recovery targets – and the rising interest in climate change in certain parts of the US – the CPI suggested this global competition will heat up.

Mr Seggie said: “We are fine as long as we have a vibrant, expanding overseas market, as we currently have in China, but our European partners are also increasing collection and will become strong competitors in the future. The UK is in the unenviable position that should any issues arise with overseas demand, then we will be among the first to suffer, as we now have such a low domestic reprocessing level.”

The CPI recovered paper sector manager warned that high energy prices would mean domestic reprocessing of waste paper may continue to decline with further mill closures, meaning the reliance on export markets will increase.

Quality
Mr Seggie said that the current situation, in which global demand is higher than the supply of recovered paper, is changing. As the supply of waste paper rises towards the demand level, more and more buyers will refuse to take lower quality paper, he said.

He explained: “Future global recovered paper trading will centre on quality, not quantity, and as the new data suggests it is even more imperative that the UK leads the market on quality to secure future collection and public confidence in recycling.”

The UK is currently working to develop new recovered paper standards, including the development of the PAS 105 standard from the BSI (see letsrecycle.com story).