Recovered Paper Prices to Remain High through 2016

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During the next five years, recovered paper demand, particularly in fiber-poor regions such as China and India, will continue to grow. At the same time, supply coming from North America and Europe will be flat or even diminish, creating a shortage that will keep prices high. These findings were recently published in the Outlook for Global Recovered Paper Markets, by RISI, Boston, Mass., USA.

"Worldwide recovered paper demand has grown by 45% in the past 10 years, with China increasingly becoming one of the largest consumers," said Kurt Schaefer, VP of Fiber at RISI. "To truly understand the demand-side, we needed to better understand China's ability to meet its own recovered paper needs. So as part of the Outlook for Global Recovered Paper Markets, we have included an extensive analysis of China's export rates and its domestic collection system."

While efforts by the Chinese government and papermakers have bolstered domestic collection, they are not enough to catch up with the country's demand (see above graph). Imports from North America and Europe continue to play an important role, but those supplies are shrinking as demand for graphic papers in the developed world continues to decline.

The report provides a historical analysis and five-year forecast of the global recovered paper sector, spanning 25 years, from 1994-2016.