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China’s recovered paper import policy has huge impact on US market

11 Dec 2019 − 

China considers complete ban on imports of all recovered paper grades by the end of 2020.

China’s restrictions on RCP imports, initially implemented in January 2018, havealtered recovered paper (RCP) global value chains as well as the financial condition of associated industries. They have also had a transformative impact on the US recycling and paper making industries, writes Sarah Scott, Office of Industries, from the United States International Trade Commission in an "Executive Briefing on Trade", published in November 2019.

The United States has long been the largest global exporter of RCP and China had been its biggest market. Accordingly, China’s more and more restrictive policies on RCP imports have greatly impacted relevant US stakeholders, writes Ms Scott.

What would have been US exports of RCP to China, particularly the RCP sub-category of mixed paper, are largely following three paths now: as exports to other countries, especially India and Indonesia; as feedstock for US paper mills; and as waste dumped in US landfills or burned in incinerators, according to Ms Scott.

And the outlook is none too positive: not only does China consider a complete ban on imports of all RCP grades by the end of 2020. Emerging alternate export destinations are also considering their own RCP restrictions following their recent increase in RCP imports, e.g. Indonesia.

This article is an excerpt from our report on international recovered paper markets and China's import policy. The full report is published in EUWID Pulp and Paper 50/2019.

Our premium subscribers can access the full report here.

For full access to company news and in-depth market and price reports on major paper and board grades, raw materials and consumables consider subscribing to EUWID Pulp and Paper or start a three-week free trial.

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