WRAP assesses the future of international markets for recovered materials
23 February 2010
Addressing the UK’s key stakeholders in the recovered paper and plastics supply chain at a closed conference in London today, Dr Liz Goodwin, CEO at WRAP (Waste & Resources Action Programme) will tell attendees that China remains the key export market, and that Chinese importers increasingly use quality, as well as cost, to differentiate between suppliers.
WRAP's sentiment survey, presented at the conference, into Chinese markets for recovered paper and plastics gives a clear indication that the Chinese paper and plastics industries have recovered well from the market downturn in 2008 and are positive about the prospects for 2010. This is good news for UK exporters, but maintaining good quality standards, is key to remaining competitive.
Looking beyond China, the UK exports a significant amount of recovered paper to India and Indonesia, albeit much less than to China. Recent WRAP research shows that paper production in India and Indonesia is forecast to grow steadily throughout the next decade and demand for recovered paper is expected to rise accordingly. The research suggests, however, that paper manufacturers are likely to try to satisfy some of their recovered paper needs by increasing collections of cheaper, domestic recovered paper rather than by increasing imports. Accordingly, there may be only limited potential for further growth in exports of recovered paper to India and Indonesia, and future market opportunities are likely to hinge on the gap between domestic and imported recovered paper prices.
Marcus Gover, Director of Market Development at WRAP said: "Our research demonstrates the importance of ensuring a diverse portfolio of markets for UK recovered materials, to buffer British businesses against any future market shocks.
"Quality is a competitive differentiator for importers, particularly as import controls tighten. We must remember that the UK is only one of many sources of recovered materials for China. So despite the positive outlook from China, we must remain vigilant of our own export quality, and conscious of the quality our competitors can produce."
Today's conference is the third of its kind, attracting attendees from across the UK, keen to maximise their business advantage through WRAP’s shared market intelligence.
Editor's Notes
- Interviews are possible, please call Katie Zabel on 01295 817872 / 07985 994381.
- Pre-views of the reports are also available from Katie Zabel, please call 01295 817872 / 07985 994381
- The reports will be made available publicly on the WRAP website on 24 February from www.wrap.org.uk/internationalmarkets2010
- WRAP helps individuals, businesses and local authorities to reduce waste and recycle more, making better use of resources and helping to tackle climate change.
- Established as a not-for-profit company in 2000, WRAP is backed by government funding from England, Scotland, Wales and Northern Ireland.
- Working in seven key areas (Construction, Retail, Manufacturing, Organics, Business Growth, Behavioural Change, and Local Authority Support), WRAP’s work focuses on market development and support to drive forward recycling and materials resource efficiency within these sectors, as well as wider communications and awareness activities including the multi-media national Recycle Now campaign for England.
- More information on all of WRAP's programmes can be found on www.wrap.org.uk
