Chinese authorities maintain Green Fence pressure

The wide-ranging nature of China’s Green Fence aimed at stopping the “smuggling of waste” into the country is becoming clear with reports from China of action on a number of fronts.

While plastics exports to China are a particular focus of attention (see letsrecycle.com story) with plastics imports to China reduced in the wake of the Green Fence, the action is also being felt in the waste paper sector and is also targeting illegal exports of electronic waste and tyres.

A Chinese official confirmed to letsrecycle.com that action was being taken on the plastics and paper front because “of the smuggling of waste and low quality material.” He added: “This is a 10 month campaign which started in March.” But, he would not comment on how the Chinese would proceed from the end of 2013.

Some exporters of waste/recovered paper say that the market to China is now “very difficult”.

‘Chaotic’

One merchant said that he felt that it was almost impossible to export at present. Another exporter said that the “situation is chaotic because of a number of factors but the main factor is the Green Fence. There is a political will in the new government to stop China becoming a dumping ground as this is being take to the ultimate level.”

He added: “It is almost that the measures have been taken from one extreme to the other while China remodels its import system. A balancing act now needs to be struck for paper and plastics.”

Chinese exporters generally confirm that there is still strong demand for material from the UK and other countries such as the United States and that better quality material should not have a problem. However, at present exporters are continuing to grapple with the problem with reports of large numbers of containers containing material from the UK and elsewhere being stopped in Chinese ports.

Some are being sent to different ports and for other containers further options are being explored. And, on loads accepted the level of claims being issued is said to have risen markedly.

In the UK, one exporter said: “You have to see this as the market not having done the job in the past and now it is. There is a premium for cleaner paperbank news and pams, for example. Inspections by CCIC in the UK are very rigorous at the moment and I think some people are in danger of being tarred with the same brush even if they are exporting good material.”

Quality

The quality of some material from materials recycling facilities (MRFs) is a problem – in the past there had been more leeway in China with plastic bottles, for example, in mixed paper being collected for recycling. But, there has also been contamination by other materials such as food and glass. Some operators of MRFs are now using third party sorters either in the UK or even in Holland to handle material. Some large tonnages of processed MRF plastics or paper are said to be being sent to Holland for further sorting before being bulked up with other supplies for export from Dutch ports.

One major exporter of used cardboard to China is Nottingham-based Mark Lyndon. The company’s managing director, Paul Briggs, told letsrecycle.com: “There should be no problem if good material is exported.”

Reflecting on the quality of material supplied by some MRF operators, Mr Briggs said: “What does need to happen is that we need to go back to the start of the process. Some people have rushed around and paid too high a gate fees to local authorities. Local authorities need to do more to educate the householder – there needs to be a far clearer message to householders and local authorities have failed to get together on this.”

On the pricing front, export prices for used cardboard (Old KLS) did reduce earlier this month but are now said to have stabilised with signs of a small increase over the coming weeks. In part this is in response to recent lower arisings in the UK and elsewhere.

However, Chinese mill buyers have indicated that they do not expect any substantial price rises for used material as linerboard stocks in China are at good levels and Chinese mills need to keep a lid on costs.

Tyres and WEEE

While the Green Fence is particularly impacting on plastics and paper exporters to China, action is being taken over other materials such as tyres and waste electronics.

China’s General Administration of Customs has recently given examples of “solid waste smuggling” in the case of tyres and batteries.

For example in Urumqi, Customs District authorities said last week (May 15) that they had found 11 waste tyres in an inward empty vehicle. Customs said: “This is the 5th solid waste smuggling case that Urumqi Customs District has seized since the start of the national campaign codenamed ‘Green Fence’.”

A statement from Customs said they had “exercised closer control over inward and outward transport means to stop the solid waste smuggling through concealment since the commencement of the campaign in March. By the end of April, the customs administration has seized 74 kilograms of discarded apparatus, equipments and electronic watches through luggage check as well 21 waste tires[sic]through customs control over goods.”

In a statement at the end of April, officials in Guangzhou said they had seized 2.16 tons of imported discarded batteries and printed circuit boards and 2.38 tons of used hard disks “which are prohibited by the State. The waste items were found on an inward small vessel.”