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Vecht 125 - 2911 ER - Nieuwerkerk aan den IJssel - The Netherlands 


Market Announcement!


Will strict regulations of RCP imports in China continue?
Since beginning this year the inspections of RCP imports became strict due to legal regulations of the Green Fence, many market participants experienced the consequences. The objective to stop illegal waste shipments is a good one, first of all to protect the environment secondly creates more equal competition.

Yes, many honest companies shipping good quality waste paper also suffered due to incorrect stops of shipments leading to incredible costs of sending back containers. This is almost unavoidable and goes with the implementation of such a process. But nobody can blame the Chinese Government to protect their environment.

The market was unfortunately the last years exporting too much co-mingled mix paper in that respect it was just waiting before it was stopped. Companies now complaining are mostly the once who earned the most the previous years on shipping illegal waste.

The mills can see the consequence of the green fence, better and cleaner RCP.

According to the Chinese Certification Group CCIC, it seems the inspections on the import of waste will continue to execute the Chinese law strictly.


In addition the following phenomenon is taking place in the North Western part of Europe, more supply of waste. As a consequence the incinerators are operating more efficient using less polluting fossil fuels which in twofold is good for the environment.
 
APP plans further expansion in Asia with five large tissue machines 
With the growing wealth in Asia the demand for tissue products will continue. The world global tissue consumption is around 30 Million tons, with North America being a market leader with 28% market share and a per capita consumption of tissue of around 23 kg. The huge potential regions looking per capita consumption being low are Latin America, Eastern Europe, North and Middle East, Africa and of course Asia with China being the king of growth.

The market arena the coming time due to global income growth followed by changed consumer behaviour, will change. 

Kimberly Clark still global market leader, is with the enormous expansion plan of APP in the near future losing her number one position. The five new machines are having each a capacity of 60,000 tons a year to be planned for China and Indonesia. The total capacity of APP will reach more than 4,5 million tons a year going over the almost 3,9 million tons a year capacity in 2016 of Kimberly Clark. In addition the expansion of APP will also surpass the capacity of the current number two SCA, who forecast to reach 4,5 million tons a year due to the take-over of the Chinese company Vinda.

 
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