China’s strict waste paper quality controls are having a dramatic impact around the world, was the message at the Cycle Link International conference held in Shanghai from February 1-3 .
The Cycle Link International conference was held against a backdrop of Shanghai
Delegates, including suppliers from as far afield as Australia, the US and Europe travelled to China and told the event about the ramifications of the controls. In Australia local authorities are facing the collapse of municipal waste and recycling contracts, American MRFs are struggling to cope, Europe is sending material to south east Asia, and there is UK uncertainty over investing in additional sorting in the face of potential rejections.
The quality measures include a ban on the import of unsorted paper (typically mixed paper) along with tight quality restrictions of just 0.5% contaminants in a tonne of used cardboard.
Rejections
Lydia Burchnall of Cycle Link who introduced the event
For waste paper suppliers in the UK and elsewhere the conference heard there is likely to be demand for more sorted office papers and newspapers and magazines to replace the mixed paper (although a 90/10 cardboard grade with 10% other paper is still permitted). Plus, exporters of material face the real and costly threat of rejections and bans as the Chinese authorities start to rigorously enforce the 0.5% rule from 1 March 2018.
The suppliers of waste paper will also find orders slower in the short term because quotas are unlikely to be allocated until after Chinese New Year which covers almost the last two weeks of February.
Optimism
But, there is some optimism that the three main buyers of waste paper for China in the UK will get the bulk of their quotas and so demand for used cardboard could strengthen in March, with prices rising. However, overall the mood of the conference was certainly that there will be a number of difficult and worrying months ahead.
China’s anti-smuggling division will act on the government side if Customs find problems with imports – the anti-smuggling division possesses draconian powers to take independent action over any breaches of regulations. Four out of 10 containers are likely to be opened by Customs with 10% of these having bales removed for checking.
Starch
Unloading material from a container at the Jia’an mill which is supplied by Cycle Link
Furthermore, on the papermaking side, the Chinese have managed to improve the use of waste paper making a tonne of new paper from 1.1 tonne of waste paper rather than 1.2 tonnes; are looking at using more starch (which is cheaper than domestic recovered paper), fillers and ash; are lightweighting production; and capturing more fibre from sludge.
And, of potential significance to the UK market was a view from the mills that with imports reducing as more domestic RCP is used (the government is encouraging its use), American waste cardboard might be preferred to UK and European material because it “is the best” and has a longer fibre length, explained Tao Liu from the Ji’an papermaking mill.
Cycle Link is a major buyer and exporter of waste paper/recovered paper (RCP) in the UK and elsewhere for use by mills in China handling a total of 4.5 million tons last year. Opening the conference, Lydia Burchnall, purchasing manager for Cycle Link UK, said that with the recognition of the need for quality by China and its impact on the global market place there had never been a better time to hold the event, which ran from 1-3 February. Cycle Link International is a major procurer of waste paper primarily for the Shanying paper mill group in China.
Craig Robinson reminded the audience of the need to not damage public health or the environment in China
Dr XiaoMin Sun, vice president of Cycle Link parent company ShanYing International, warned delegates that “the new regulations will be a big challenge to this industry”, adding that “Cycle Link International will work together on this with you.”
Public health
Emphasising that the company recognises the validity of the Chinese government’s aims, Craig Robinson, global director – strategy and strategic planning, for Cycle Link in Europe, said: “Sometimes we forget we are sending our material a long way and we mustn’t forget that we shouldn’t do anything to damage public health or the environment in China.
“In the UK we are engaging with politicians and the wider industry to promote good quality and the circular economy and this includes the Recycling Association.”
A senior Chinese paper mill representative confirmed how China has introduced the measures as part of a shake-up of its own waste management system which it is aiming to improve. “The government is focused on economic transition but also has a desire for improving environmental protection. Waste classification and the waste hierarchy is promoted. The number will be 0.5% and will be welcomed by us.”
His emphatic message to the delegates was: “If you still want to do this business you will have to meet those requirements. I think the standards in China will be higher than in developed countries due to political issues. You have to invest.”
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Source: letsrecycle.com Plastic
