Second WRAP Chinese Market Situation Report highlights a need to keep quality at the forefront.
21 March 2011
WRAP’s first China market situation report was published in spring 2009, in the direct aftermath of the 2008 market downturn, and the marketplace has changed significantly since then. This update looks at the key developments in the Chinese markets for recovered paper and plastic since that report was published, including trends in demand, prices and the balance between imported and domestically recovered material. In addition, the Special Focus explores the wide array of end uses for recovered plastics in China.
The report highlights China’s position as the single largest destination for UK exports of recovered plastics and paper. Over the past ten years, China’s share of UK exports of recovered paper has risen from less than 10% to 61%. The predominance of China as an end-market for recovered plastics is even more marked, with China’s share of UK exports of recovered plastics growing from 60% in 2000 to 88% in 2010.
Despite the global economic slowdown the Chinese economy is still growing rapidly and importing large quantities of recovered materials from the UK and elsewhere. However, China is increasingly tapping into its own resources of domestically-recovered materials. Looking ahead, Chinese demand for recovered paper and recovered plastics is expected to continue to grow over the next five years. Imports are expected to remain an important part of China’s supply of recovered materials but China seems likely to become more self-reliant.
The report reveals, for the first time, a comprehensive picture of end uses of recovered plastics in China. The available data show a diverse range of end uses in three main sectors: packaging, construction and appliances. The analysis highlights that recovered plastics tend to be used to manufacture products destined for the Chinese domestic market, which in turn links future prospects for recovered plastic demand closely to developments in the Chinese domestic economy.
Marcus Gover, Director, WRAP, said: “Building upon our previous data and intelligence, this investigation of Chinese markets reveals that China is still open for business to UK exports. However, what is clear to me is the need to think one step ahead and ensure UK materials remain competitive.”
“As part of planning ahead I think there is an opportunity to continue to drive to keep increasing UK demand: plants like the new Biffa Mixed Plastics site in Redcar, part funded by WRAP, will go some way towards providing a balanced portfolio of end-markets for UK materials whilst promoting job growth in the UK.”
“Quality remains a key issue at home and for the UK’s overseas markets, and if China has access to quality materials closer to home we have to make sure that UK exports are also of excellent quality.”
