Data released by China Customs showed China imported nearly 320,000/mt of paper-grade recycled pulp in the first two months of 2021, surging +43.12% from the same period of 2020! In January alone, over 170,000/mt were shipped into the country and shipment arrivals could have been even higher, were there not a week-long holiday break in February. The consistent rise in price did not slow down active purchase from Chinese buyers, market analysts concluded.

The strong increase in recycled pulp imports coincided with the steep decrease in recovered paper imports. Having no new orders for 2021 or roll-over deliveries under 2020 import quota from overseas, China's recovered paper imports only originated from Hong Kong nowadays and were restricted to Guangdong, the country's southern province bordering Hong Kong under special arrangement between governments of Guangdong and Hong Kong. In addition, only 4 paperboard producers in the province are granted with the privileges to order and take shipment. As a result, China's recovered paper imports – with 77% OCC - dwindled to 68,700/ mt in the first two months of 2021, less than 10% of the nearly 770,000/mt in the corresponding period of 2020.

It is expected that China's recycled pulp demand will remain active and imports from overseas, including those supplies from Chinese investment in North America and Asia, will grow strongly. Some market analysts predict that full year imports in 2021 will exceed 3 million/mt, nearly double that of 2020!