Chinese demand for paper and plastics slows

UK exporters of recovered plastics and paper may find it increasingly difficult to trade with China, as the country begins to galvanise its domestic collection and reprocessing infrastructure.

That is the headline finding of the Waste & Resources Action Programmes (WRAP) latest market report on the Chinese markets for recovered paper and plastics.

The 2011 report, published yesterday (March 21), builds on the 2009 report, which indicated that the Chinese market for recovered paper and plastic was responding positively following the 2008 economic downturn (see letsrecycle.com story).

At the forefront of its update, WRAP states that, although Chinas demand for paper and plastics are expected to rise over the next five years, it is increasingly tapping into its own resources of domestically-recovered materials.

And, while imports will play a role in meeting need for material, WRAP claims that China seems likely to become more self-reliant”.

Commenting on the report, Marcus Gover, director of market development programmes at WRAP, said: Building on our previous data and intelligence, this investigation of Chinese markets reveals that China is still open for business to UK exports. However, what is clear to me is the need to think one step ahead and ensure UK materials remain competitive.

Mr Gover added that the growing internal focus in China could help foster development of UK domestic reprocessing infrastructure and pointed to the opening of the Biffa Polymers mixed plastic recycling facility last week (see letsrecycle.com story).

Export

China remains a key trading partner for the UK, with its share of UK exports of recovered paper rising from less than 10% in 2000 to 61% in 2010. This was at the same time that exports of UK recovered plastic China also rose growing from 60% in 2000 to 88% in 2010.

The most recent report states that the import of recovered paper has slowed in China, with its level of recovered paper consumption that was imported falling from 45% in 2007 to 44% in 2009. WRAP claims that is likely that this figure would have fallen again for 2010.

Ultimately, WRAP claims that Chinese demand for UK exports of recovered paper is expected to grow steadily and imported material is set to benefit from development of collection and reprocessing infrastructure taking time to development.

The report also indicates a projected growth in demand for plastics over the next five to 10 years, with CBI China forecasting that demand for recovered plastic could reach 29 million tonnes by 2015 – 65% more than in 2009.

An increased level of plastic recovery rates is set to be fostered by government plans to implement localised pilot programmes for standardised collection and reprocessing schemes.

And, while domestic collection rates would increase, WRAP said imports would remain a significant part of the supply mix, although at a slower rate.