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Addressing the UK’s key stakeholders in the recovered paper
and plastics supply chain at a closed conference in London,
Dr Liz Goodwin, CEO at WRAP (Waste & Resources Action Programme)
told 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."
The conference was the third of its kind, attracting attendees
from across the UK, keen to maximise their business advantage
through WRAP’s shared market intelligence.
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