The recovered paper sector is anticipating another year of dramatic swings. "The European recovered paper market remains extremely volatile," said Mike Hayes, chairman of the paper recycling division of German recycling and waste management association Bvse. In his opening remarks at Bvse’s 27th International Recovered Paper Conference in Bonn on 1 April, Mr Hayes predicted that the market would see a repeat of last year’s price "roller coaster" again in 2025. Prices have indeed recently started moving sharply higher on the recovered paper market in Germany and other countries.
But anyone who interprets the upturn as a sign of an economic recovery "will be disappointed", Mr Hayes warned. He pointed out the reason for last year’s price surge had not been higher demand but rather limited supply and paper mills’ resulting nervousness. Driven by fears they might have to curtail production, paper manufacturers had tried to build up recovered paper inventories, only further exacerbating market tensions, according to the Bvse division chair.
Given the recent plant closures and insolvencies that have permanently changed the European production landscape, this trend could continue in the current year. The industry is operating in an environment of high energy prices, weak demand and tight raw material supplies, Mr Hayes explained.
No agreement on end-of-waste status for recovered paper at EU level
One of the main problems facing the industry is there is still a lack of a mechanism through which recovered paper can attain end-of-waste (EoW) status. Despite years of efforts, there are no harmonised criteria for the recognition of recovered paper as a product. "There is still no solution at the federal German or the EU level," Mr Hayes complained. Differing interpretations made it "simply impossible to act in a legally compliant manner", which was thus impairing trade.
Negotiations on EU-wide EoW criteria for recovered paper took place in early March, according to the Bvse representative. However, the two umbrella associations representing the recycling sector, EuRIC and FEAD, and the Confederation of European Paper Industries (CEPI) could not reach agreement. This meant that a lot of work had proven in vain yet again and a solution acceptable to all participants in the supply chain remained a long way off, according to Mr Hayes.
At the national level, the recycling industry is still hoping for progress with the classification of recovered paper as a product across Germany. There is an ongoing dialogue with the paper manufacturers, but there is still a lot of work to be done here as well, he added.
In addition, the deteriorating quality of recovered paper is making the recycling process more difficult. Economic trends and new forms of packaging, especially fibre-based composite packaging, are negatively affecting the recycling of recovered paper and board from household collections. "The responsibility for improved recyclability should be anchored in the product and packaging development and design stage," Mr Hayes said.
