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Coverage Note: Changes to RCP into Asia – Notice of Implementation

April 6, 2018
By Sharon Levrez

Following extensive consultation with stakeholders, RISI has implemented the following changes to recovered paper coverage in PPI Pulp & Paper Week and PPI Asia.

Mixed Paper

China’s ban on imports of “unsorted” recyclables has resulted in virtually no Mixed Paper from the US, Europe or Japan being sold into China. Instead, Mixed Paper is being diverted to other Asian ports. To reflect this change in trading patterns RISI will make the following adjustments to its Mixed Paper coverage:

  • PPI Asia has launched new bi-weekly assessments of Mixed Paper & Board from Japan, Europe and the US to Taiwan and Southeast Asia with effect from Apr 6;
  • Assessments of US Mixed Paper exports CFR China in PPI Pulp & Paper Week were discontinued on Mar 5;
  • RISI has changed the destination title of US Mixed Paper assessments FAS US ports in PPI Pulp & Paper Week from China to Asia with effect from Mar 5;
  • Assessments for Mixed Paper and Board from Japan, Europe and the US delivered China in PPI Asia were discontinued on Mar 16.

Corrugated Grades

The stricter rules on imports to China have also affected corrugated grades, with only higher quality OCC such as double-sorted (12) going into China, and standard OCC being sold to other Asian countries. RISI has therefore made the following changes:

  • PPI Pulp & Paper Week launched new assessments for US exports of Double-Sorted OCC (12) to China FAS US ports with effect from Apr 5;
  • PPI Pulp & Paper Week launched new assessments for US Old Corrugated Containers (11) FAS US ports destined for Asia;
  • PPI Pulp & Paper Week has removed the term “Select” from price assessments for exports of Old Corrugated Containers (11) from New York/New Jersey CFR Nhava Sheva, in India with effect from Apr 5. Going forward these assessments will simply reflect OCC (11);
  • PPI Asia launched new price assessments for US exports of Double-Sorted OCC (12) CIF main ports in China from Apr 6;
  • PPI Asia has launched bi-weekly assessments of OCC from Japan, Europe and the US CIF main ports in Southeast Asia and Taiwan from Apr 6.

RISI continues to consult the market on whether to discontinue its coverage of OCC (11) into China. This change has not been confirmed and no timeline has been fixed as yet.

News Grades

The stricter limits on contaminants in recovered paper imported to China has also affected other news grades such as Sorted Residential Paper and News (56) and Sorted Clean News (58). Like Mixed Paper, Sorted Residential Paper and News (56) is also being sold elsewhere in Asia, rather than into China. To reflect this, RISI has made the following changes:

  • Discontinued assessments of US Sorted Residential Paper and News (56) CFR China in PPI Pulp & Paper Week with effect from Apr 5;
  • Discontinued assessments of Old Newspapers (6 and 8), which correspond to US Sorted Residential Paper and News, CIF China in PPI Asia from Apr 6;
  • Changed the destination title of assessments of US Sorted Residential Paper and News (56) FAS US ports in PPI Pulp & Paper Week from China to Asia
  • Launched new bi-weekly price assessments for US Sorted Residential Paper and News (56) CIF Southeast Asia and Taiwan PPI Asia from Apr 6;
  • Launched new assessments for US exports of Sorted Clean News (58) destined for China/Asia FAS US ports at Long Beach, CA, New York-New Jersey, and Oakland, CA, ports, and Chicago container yard in PPI Pulp & Paper Week from Apr 5;
  • Launched new weekly assessments for US exports of Sorted Clean News (58) CIF main ports in China on Apr 6;

For comments and queries on any of the changes mentioned above, please email pricing@risi.com, mentioning “China Recovered Paper” in the subject line.