Posted on 08/06/2009 in category Convention

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

Monday,8 June 2009

BIR WorldRecycling Convention

25-27 May2009, Dubai

PressReleases on Plenary Meetings

PaperDivision:

Steadilygrowing demand from India and China

Since early 2009, Europehas witnesseda corresponding decline in recovered paper demand and collectionvolumes. In China, meanwhile, imports actually increased from 5.917mtonnes in the first quarter of 2008 to 5.934m tonnes in January-March2009, noted BIR Paper Division President Ranjit Baxi of UK-based J&H Sales International during his market presentation in Dubai.

With China and Indiaanticipating GDPgrowth of around 7% this year, “steadily growing demand” forrecovered paper can be anticipated from these major export markets,he continued. However, Asia’s suppliers in Europe face a number ofchallenges, not least an average shipping freight rate increase ofUS$ 400 per 40-foot container in the period from January to May thisyear. Further increases can be expected for June and beyond, Mr Baxiadded.

The divisional Presidentoffereddelegates three “golden rules” to help guide them through thesetesting times: “do not panic”; “develop a positive attitude”;and “don’t shy away from difficult decisions”.

Earlier, a series ofreports fromaround Europe reflected the drop-off in regional demand for recoveredpaper and also in collection levels. According to Merja Helander ofPaperinkeräys Oy in Finland, domestic collections fell 20-30% inearly 2009 at the same time as a number of Finnish mills tookdowntime. A 10-15% decline in collection volumes was reported forSweden by Jan Bruzelius of IL Recycling AB; and the first-quarterfall in the Czech Republic’s collection total was estimated at 10%by Jaroslav Dobes of Remat SRO. For his part, Roberto Masotina ofMasotina SPA suggested that “a miracle” will be required toprevent the shut-down of more consuming mills in Italy later in theyear.

Two leading Asian consumersofrecovered paper - Indonesia and India - are currently pondering thedetail of changes to import controls, it was pointed out in Dubai.Having met with industry representatives, including Mr Baxi, seniorgovernment officials in Indonesia are understood to have signalledtheir willingness to revisit proposals for 100% pre-shipmentinspection by nominated surveyors of all recyclables arriving in thecountry on or after June 24 this year. According to Mr Baxi, optionsthat the country’s officials may be considering include: extendingthe list of surveying companies beyond the two identified at present;and deferring the introduction of the new controls regime beyond June24. It is also possible that 100% inspection criteria may bereconsidered, he added.

Mr Jogarao Bhamidipati ofleadingIndian paper producer ITC became the latest recipient of the BIRPaper Division’s Papyrus prize in recognition of his efforts inestablishing the Wealth out of Waste (WOW) initiative designed toboost employment and domestic collections of recovered paper so as toreduce India’s heavy dependence on imports. In his speech he shedmore light on his own government’s import certification initiative,insisting that some “relief” from requirements proposed earliermay be forthcoming before the middle of June. At present, he noted,the country buys in 4.3m tonnes of recovered paper each year at atotal cost of around US$ 1.2bn.

Guest speaker Lina Chaaban,EnviroCareManager at UAE-based waste management company Tadweer, outlined moveswithin Dubai to increase recycling rates, At present, the Emirateconducts virtually no sorting at source but recovers some 7-10% ofpaper and cardboard from the mixed waste stream.

Another guest presentationfrom AtulKaul, Director of Pulp and Paper at Arab Paper Manufacturing,confirmed that annual papermaking capacity in Saudi Arabia is set torise from around 800,000 tonnes to 1m tonnes in the near future.Monthly recovered paper collections amount to some 60,000 tonnes, ofwhich 5000-10,000 tonnes is exported - mainly to India.

 

-ends -