Page 75 - Plastics News May 2024
P. 75

IN THE NEWS
                                                                                IN THE NEWS




          Once a growing market, recycled pulp exports dry up

          Although recycled pulp export activity has slowed considerably, Total Fiber Recovery has started up its mill
          in Virginia and is producing bales of dried recycled pulp for export and domestic sale. | Photo courtesy Total
          Fiber Recovery

                                                                                 in a recent interview. Resource Recy-
                                                                                 cling spoke with Moore and others to
                                                                                 learn about the industry  challenges
                                                                                 and the few bright spots.
                                                                                 Roots in the China ban

                                                                                 The concept of shipping recycled pulp
                                                                                 from the U.S. to China – or, indeed, to
                                                                                 any  country  –  was  unusual  in 2018.
                                                                                 That  year,  just  16,000  short  tons  of
                                                                                 recycled pulp were exported to China,
                                                                                 and just 48,000 tons were exported al-
                                                                                 together. Export volumes had hovered
                                                                                 around that range since at least 2002,
                                                                                 the earliest year export records are
                                                                                 available, although they spiked above
                                                                                 100,000 tons for a few years in the
                                                                                 early 2010s. Mostly, it was a negligible
                                                                                 export commodity.
                                                                                 That’s partially because there is a lot of
                 n  May  2018, as  the  global  arm America Chung Nam, these pur-  work involved in transporting pulp: Af-
                 recycling  industry  was  reel-  chases  marked  the  company’s  first   ter processing the raw recovered paper
                 ing from the Chinese govern-  entrance into the U.S. market as more   and pulping it, the pulp must be dried
                 ment’s move to ban or heavily  than a material buyer. And the com-  before being loaded into shipping con-
         restrict imports of key recovered paper  pany’s next move was equally striking:   tainers for the long journey across the
         grades, the largest paper company in  Nine Dragons announced it would in-  ocean. In its wet form, pulp only has a
         China made  an investment  that  drew  stall recycled fiber processing capacity   few days before it would start to mold
         some attention.                     at two of the virgin paper mills, and the   or otherwise deteriorate  in quality.
                                             company said it would begin shipping   Those steps didn’t make sense as long
         Nine Dragons that month announced it                                    as raw mixed paper and OCC could be
         would buy two U.S. virgin paper mills   the vast majority of recycled pulp pro-  shipped into China, where the pulping
         in Rumford, Maine, and Biron, Wiscon-  duced at the U.S. mills into China.  would then take place.
         sin. Just three months later, the com-  Other companies followed suit, an-
         pany announced it would purchase  a  nouncing plans for projects that would   So the series of actions by the largest
         recycled paper mill in Fairmont, West  export finished pulp to China. And in-  paper company in China underscored
         Virginia.  And in October 2018, the  deed, recycled pulp exports rose fast   how the global paper recycling indus-
         company  announced  it  would buy  a  in the years that followed. But six years   try was evolving in the wake of China’s
         fourth U.S. mill in Old Town, Maine,  later, they have now slowed almost to   import restrictions. The purchases
         producing virgin fiber.             a halt, export figures show.        were  part  of  a  broad  fiber  sourcing
                                                                                 strategy  laid out  by  Nine  Dragons,
         Although Nine  Dragons  was  well-  “These projects in the U.S. have just   which  was  significantly  impacted  by
         known as a massive buyer of U.S.  never panned out,” said Bill Moore, a   losing  access to abundant recovered
         recovered paper through its sourcing  longtime recovered  paper  consultant,   fiber imports.


 74  PLASTICS NEWS  MAY 2024  MAY 2024Y 2024                                                    PL             75 77
                                                                                                PLASTICS NEWSASTICS NEWS
            MA
   70   71   72   73   74   75   76   77   78   79   80