2020 first batch of license for waste paper

On December 23, the first batch of import license for waste paper in 2020 was published, with 39 enterprises approved for waste paper imported, and total of granted volume of 2,783,470 tons.

According to preliminary statistics, with the exception of newsprint paper mills, most of paper mills have been granted import quotas equivalent to about 21% of their own quotas in 2019, but seven paper mills in Guangdong have been granted quotas about 1-6% higher than the general level. It is speculated that this may have something to do with the problem of waste paper in Hong Kong.

In 2019, the total quota of waste paper import license is about 10.75 million tons, and the total number of approved enterprises is 79. According to the policy guidance, the import quota of waste paper will continue to decline in 2020, which is expected to reach 6-6.5 million tons. The passive reduction of demand may lead to the continued low prices of China and foreign waste markets in 2020.

In the same period, in order to make up for the lack of fiber caused by the restriction on the import of waste paper, the volume of recycled pulp imported by China is expected to keep a high growth rate in 2020.

From January to October 2019, China imported about 670,000 tons of recycled pulp, approximately up 182% year-on-year, according to China Customs.

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