New Chinese import licences raise price
of OCC exports from the UK

Recovered paper storage yard
22.07.2019 − 

Recently issued licences for importing recovered paper into China sent export prices for old corrugated containers (OCC, 1.05) slightly higher in the UK in July. However, experts’ celebrations were muted. Af-ter all, these licences had covered only around 1.7 million t – and this material would be mainly purchased in North America, insiders pointed out.

By way of comparison, licences covering a little less than 10 million t had been awarded so far in 2019. Last year, about 13 million t had been is-sued by July. The total for the year was just over 18 million t. Experts suspected that the impact of the new licences might quickly dissipate based on this comparison. Yet, customers were also still paying more than they had in June for OCC exports to South-East Asia and India as mid-July arrived.

The increase was only partly connected to the “China effect”, experts said. Stricter quality requirements imposed by Vietnam, for example, and a 100 per cent inspection rate for shipments to Indonesia as well as the weaker pound Sterling were playing a role.

Our online subscribers can access the full report immediately here.

The full report on the recovered paper market in the UK will also appear in EUWID Recycling & Waste Management 15/2019 published on 24 July.

Tags of this news:

previous − Steel scrap supply and demand lower in Germany in July

German recovered paper prices tick only slightly lower in June  − next