China's "Limited Waste Order" stirs up the global waste paper market

According to the "Nikkei Business News" reported on May 24, China has raised the standard for importing waste paper related impurities based on environmental protection purposes this year. Since May, the import of waste paper from the United States has virtually ceased. Waste paper wholesalers and paper companies are paying close attention to whether China will expand its demand for waste paper in Japan. Or the market that has been depressed will be limited? From May 4 to June 4, China actually stopped importing waste paper from the United States. At the time of exporting waste paper to China, inspection agencies that are accredited by China will conduct inspections before loading paper, but for the United States, because the Chinese side has indicated that inspections will be strengthened within one month, the United States cannot export waste paper. According to the report, China has banned the import of waste paper containing more impurities and unscreened from various countries this year, and lowered the upper limit of the proportion of impurities in imported waste paper from 1.5% to 0.5%. Due to the inspection of imported waste paper from the United States, many unqualified products were found, which led to China’s adoption of the above measures against the United States. According to the Japan Paper Export Association, the United States accounted for 45% of China's waste paper imports in 2017, far exceeding Japan's 10% share, ranking first. Although it is temporary, the largest waste paper demand country, China, has stopped importing from the United States, which has a great impact. “The demand for better quality Japanese waste paper should increase,” said Okubo Shinon, chairman of the Kanto Paper Raw Materials Direct Mining Business Association, which was established by waste paper wholesalers. He also called on member companies of the Federation to strengthen the screening system. In order to provide waste paper without impurities, it can be provided without spending money. The report said that in Japan's exports and the domestic market, the waste paper market is not good. The export price of cardboard waste paper, which reached its peak in July 2017, fell due to China's import restrictions. The Kanto commercial and industrial combination has stopped exporting for three consecutive months. From January to March 2018, Japan's cardboard waste paper exported to China decreased by about 40% compared with the same period in 2017. Japan began to export more to Southeast Asian countries such as Vietnam and Indonesia. At present, the circulation price of cardboard waste paper in Japan is 1 kg and 10 yen (100 yen is about 5.81 yuan - this net note), which is 2 yen lower than the most expensive in the summer of 2017. If China's alternatives to waste paper are highlighted after China stops importing from the United States, it is likely to support export prices and domestic prices. China's demand for waste paper for making cartons is strong, and the local transaction price is nearly three times that of Japan, but the analysis believes that China's import restrictions will be long-term. It is difficult to predict how much demand for Japanese waste paper will increase, and waste paper wholesalers and paper companies feel anxious and will continue to do so.

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