China will ban all grades of waste paper imports by March 2020; its time to ‘Make in India’

    Hyderabad | 29th August 2018 | The Pulp and Paper Times


    China’s ban on inferior quality waste paper about nine month back is turning profitable for Indian paper mills in terms of export of paper to china. This trend of ban might prevail to the ‘complete ban’ on all type of waste paper. “China has announced that all waste paper, of which they are importing, will be completely banned by March 2020. This is a good lesson and information which is coming to us and accordingly we can make strategy in our industry. China is very prominent in implementing its announcement.” Mr. P. S. Patwari, Executive Director of Emami Paper Mills Ltd. said during inauguration of PaperTech 2018 Summit organised by Confederation of Indian Industries (CII) based on Energy Conservation in Process Industries at Hyderabad. For years, China had lenient standards for scrap imports, and much of the plastics and wastepaper that arrived in container ships was loaded with contaminants, such as cheese-encrusted pizza boxes. Much of it had to be discarded because those contaminants can’t easily or economically be separated out. The government this year started demanding a cleaner trash stream in a bid to keep extra waste out of its own landfills.


    “The ban on inferior grade of waste paper, whatever industry based on that grade of waste paper, either fully shut or partially shut in China. This shut has created a shortage of particular paper products, and Newsprint is one of them. More than 2 Million tons newsprint capacity in China has been shut because of ban on waste paper. It’s a global shortage and India paper mill should be ready to meet this shortage. Except to Newsprint, packaging paper, Kraft and duplex board are being exported to china now.” Mr. Patwari said.


    China’s environmental concern is extended to Southeast Asia nations also. Thailand will ban imports of 432 types of scrap electronics within six months, an environment ministry official said on 16th August 2018, the latest country to respond to China’s crackdown on imports of high-tech trash this year.


    Southeast Asia nations fear they are the new dumping ground for the world’s trash after China banned the entry of several types of waste as part of a campaign against “foreign garbage” Thailand’s ban comes weeks after regional neighbor Vietnam said it would stop issuing new licenses for waste imports and crack down on illegal shipments of paper, plastic and metal.


    “The benefit of ban on waste paper by China and Vietnam and USA’s trade war is helping Indian Paper Industry. Tightening of the environmental norms in China is causing million of Industry over there. The demand of pulp has gone up, the cost of pulp also gone up. This has jacked up prices of pulp and this in turn has resulted in prices of paper and finished products going up. Good days don’t always last. Paper Industry must utilise the extra money for better efficiency and energy conservation.” said by Mr. Sanjay Singh, Divisional Chief Executive, ITC Limited -Paperboards & Specialty Papers Division. “


    The country’s demand for newsprint is estimated to be about 2.8 million tonnes but production is about 1.2 mt, and the balance is imported, if we produce all that we consume domestically, we would be able to save about Rs. 10,000 crore every year.” Mr. Patwari said.


    American recycling programs and processing plants have struggled to meet the stricter standards. U.S. exports of recovered paper to China fell 39 percent in the first five months of this year, U.S. export data show. A ton of recovered cardboard fetches $74 in the U.S., where it sold for $170 a year ago, according to RISI. Some inferior grades of paper and plastic are bringing so little revenue that some U.S. recycling programs consider it to be more economical to stick it in landfills.