Exports from the UK of recovered paper and used plastic film for recycling in China remain under pressure, in the face of a quality clampdown by Chinese customs authorities.
On the paper side, the sector is facing difficulties over mixed paper, typically paper recovered from the municipal waste stream via materials recycling facilities. But, the mixed paper grade specification could be tightened allowing mixed paper to be more easily exported to China.
On the plastics front, export of bottles to China is already minimal but now the export of post-consumer films is coming to a halt in the face of a quality crackdown.
Plastics
Plastics recycling exporters told letsrecycle.com this week that the export market for used post-consumer film to China has all but come to a halt.
Exports of film generally were down over the last few months and now with the National Sword quality crackdown in the country most film exports are not being accepted or are being severely delayed at Chinese ports.
There are reports of large numbers of containers containing film being held for inspection in Hong Kong, costing the trader or exporter demurrage and other costs.
The mixed film market is under pressure with the sector saying post consumer material is having to be stored
The problem with post-consumer film is more acute because it is often used to make lower quality products and is not readily used to make pellets which can be used in the plastics sector and have a higher value. While buyers in Europe may take some of the post-consumer material, there is talk of it currently being stored in the UK. And, with capacity almost full, one recycler said he felt the only option would be for waste management companies to start sending the material to energy from waste plants.
Post industrial and post commercial material is less of a problem still able to be moved overseas to countries in South East Asia including China but even this is being scrutinised more closely.
In the UK exporters using the Chinese inspection agency CCIC say it is examining and certifying loads carefully before they are shipped, although one company said that even with inspection in the UK, there was still a risk that Chinese authorities may send the material back.
He added: “With post commercial material, retailers, including even the large supermarket chains, need to ensure staff do not throw in other plastics with the film as this is contamination, which is now being cracked down on by the Chinese authorities.”
Overall, the post-industrial and post-commercial material is less of a problem than post-consumer material and it can more easily be made into pellets. There is also a growing number of UK businesses which have invested in processing machinery to turn the film into pellets for subsequent use in manufacturing.
In price terms there are suggestions that the export orders and price for lower quality film has collapsed although 98:2 (higher quality) material is still in demand. In the domestic market poorer quality film is said to be heading towards a zero value. Plastic PRN prices are also rising, currently they are said to be in the low fifties range but could well move higher.
Mixed paper
In the waste paper or recovered paper market, attention is focusing on the export of mixed papers to China. The material often comes from the domestic waste stream and includes more packaging material nowadays as consumers take in more home deliveries.
Mixed paper remains in demand from China and Europe but improving quality is a priority
China, which takes in about 8 million tonnes of the material from Europe and elsewhere each year, has cracked down on the import of mixed paper because of contamination levels above the standard grade norm of 1.5%. There have been concerns that everything from nappies and food to plastic bottles have been found in some loads.
Agreement
There had been concerns that China might even ban mixed paper imports because of the contamination. However, some form of agreement is now thought to have been reached over exports with the suggestion that the criteria for the mixed paper grade should be tightened to help overcome Chinese concerns.
There had been some talk of introducing a new “Grade 6” for mixed paper, linked to American grades, which would have improved the quality of mixed paper by increasing the newspaper content. But, this could have increased the value of newspapers and also mills do not necessarily want extra newspaper volumes in the mixed paper which they use as part of the feedstock to make new cardboard.
Alternative
Now an alternative approach is likely. At present under the EN643 grading system, published in February 2014, Grade 1.01 – ordinary mixed paper and board – can have 1.5% of non-paper components (ie contaminants). Under discussion with China is the idea that this 1.5% figure be reduced to 1% to help cut contamination levels, although this would increase pressure on MRF operators and local authorities to reduce contamination.
Such a move could keep the Chinese markets open and China is said to be caught between the fact that industry needs the material and there is the desire to improve quality. Other markets also want mixed paper and demand from Europe is said to be firm as cardboard mills strive to use more mixed paper to help keep their costs in check.
Quality First
Commenting on the current situation, Simon Ellin, chief executive of the Recycling Association, said: “We are running our Quality First campaign and we would wholly support a move to 1% which would help make our industry sustainable and keep material flowing to China.”
Mr Ellin added that mixed paper is an important feedstock for China: “most modern mills there are geared up to use at least 20% mixed fibres and it is cheaper than OCC (cardboard)”.
Simon Weston, raw materials director at the Confederation of Paper Industries, said he felt the pressure would be on MRF operators to quickly improve the quality of their material. “We would be supportive – I think the UK mills will be also. If the 1% figure can be achieved then it will be an important step towards high quality recycling.”
‘Real issue’
A Chinese perspective came from Colin Clarke, managing director of Mark Lyndon UK, a major recovered paper exporter to China. Mr Clarke said: “Quality is a real issue and is very much on the agenda. There are heightened inspections and National Sword is being implemented by the authorities. Our understanding is that a move to a 1% level is quite likely, which will help and mean that a ban on mixed paper is not on the cards in the near future.”
Mr Clarke added that he was not sure that the idea of a “Grade 6” with higher levels of newspapers would work because of the falling volumes of newspapers currently found in the domestic stream.
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Source: letsrecycle.com Plastic
