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Recycled Pulp Business Needs Industry Guidelines
2021-04-12 13:40chinapaperonline.com
Regardless of the rapid increase of recycled pulp imports from the outside world, China's recycled pulp market is still at its emerging stage as compared with virgin pulp and recovered paper markets, not only in terms of volume. On its road to grow into a sustainable and established business, China's recycled pulp market needs time to nurture consistent suppliers, established grades, commonly observed specifications and indicative prices.

So far, Chinese buyers are sourcing recycled pulp from various foreign markets including India, USA and European countries. Even though much of the transactions are on pulp made of OCC, it is still on an evolution stage as respective buyers and sellers are learning and working to develop their mutually acceptable specifications pending for an industrywide standard guideline. In addition, the price difference between what is offered by overseas suppliers and countered by Chinese buyers is often strikingly significant that makes a deal most difficult! Take March, for example, when offers of recycled pulp made of OCC from USA, India and other countries reached US$540/mt, CFR CMP or beyond, the Chinese buyers were only ready for orders at limited volume and price not higher than US$510/mt, CFR CMP!

More market analysts agree, however, that price can only be a road bump to the business once in a while. What confronts the market participants is the lack of industry guidelines specifying such key items as product's physical properties, packaging, inspection, claims and dispute settlement, which will serve as the basis for both the buyers and the sellers to follow in negotiation and conclusion of their business. Such guidelines will also expedite the founding of a recycled pulp market in similar practice to the virgin pulp and recovered paper markets and help the shaping of main suppliers and marketable prices in the long run.

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