The market for recyclable waste is likely to see continuing demand from China, despite the economic downturn, according to a ground-breaking new survey.
The WRAP (Waste & Resources Action Programme) survey reveals a more optimistic outlook for exports of the UK’s recovered paper and plastic to China. It found that only 8% of paper and 13% of plastics reprocessors were not buying recovered materials, despite being questioned in the aftermath of the sharp falls in demand and prices from China last autumn.
The survey questioned more than 100 paper reprocessors and 100 plastic reprocessors in China. Those questioned said they planned for their capacity to remain at the same level, while sentiment on demand and margins tended to be more positive than negative.
UK trade in recovered material with China has soared over the last 10 years. Exports to China for recycling have increased from a few thousand tonnes in 1999 to 2.7Mt of recycled paper in 2008. But only a few months ago, the Environment Agency warned that ‘the speed and breadth of the downturn in demand and price for some recyclable waste is unprecedented’ (Surveyor, 20 November 2008).
Marcus Gover, director WRAP, said: ‘Our China market sentiment report breaks new ground in an understanding of how the Chinese market views materials from the UK. And it is good news that China is still open for business as far as UK recovered materials are concerned.
‘However, while the export market is a valuable one, it is just one part of the jigsaw. Both domestic and export markets play a key part in recycling.’ He said both markets were looking for as high a quality as possible. ‘Quality material is still attracting a premium price.’
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