China’s waste paper import ban to impact paper price in India

waste paper
New policies on waste paper import by China’s Ministry of Environmental Protection is said to have resulted in reduced output and supply from the country as the shortfall of millions of tonnes of raw material.

Imports of plastic, paper, and metal waste totalled 11.83 million tonnes for January-July, down 54.4% from the same period last year, according to China’s General Administration of Customs. In 2017 the import quantity of waste paper decreased by 9.8% YOY and the value of imports increased by 22.8% YOY. The average price of imported waste paper increased by 36.1% YOY in 2017.

According to reports, the new policy meant Chinese enterprises must apply for import quotas from the Ministry. Permits of several companies have said to be cancelled due to alleged illegal activities.

Regulations on the Environmental Protection of Imported Waste Paper also came into effect in China from March 2018. This meant that the production capacity of enterprises applying for import permits must reach 50,000 tons/year, and the impurity rate of waste paper was adjusted from 1.5% to 0.5%.

Reports also suggest that the export volume of paper and paperboard in China accounts for less than 5% of their total output with the Chinese government laying emphasis on local consumption and need to safeguard the environment.

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