China has increased the volume of US recovered paper purchased in May
US recovered paper continued to be purchased by China in May, with an increase in volume YTD of 23.5%.
China bought 1.25 million tonnes of US recovered paper in May, slightly above their average monthly purchase of 1.18 million. In Jan to May 2011 China was responsible for buying 67.5% or 5.96 million tonnes of all US recovered paper exports – up 13.9%
We believe this is due to China’s plans to increase capacity in boxboard and containerboard. We’ve also seen mill buyers in China reducing demand to force prices down for old US corrugated containers, which had reached as high as $280/tonne delivered.
In May we’ve also seen exports to Mexico down 7.6% (to 1.17m tonnes) and down 30% to Canada (to 345k tonnes) with exports to W.Europe up 96% (at 195k tonnes) and the same amount going to S & C America.
Posted Date: 22nd Jul 2011