Recovered paper usage predicted to surge by 2014

China will generate the majority of the growth in recovered paper demand over the next five years, and while governments and papermakers attempt to boost domestic recovery of paper in China, this will not meet forecast demand as much is used for packaging goods which then leave the country.

The fifth edition of Outlook for Global Recovered Paper Markets, published by RISI, an information provider for the global forest products industry, provides the current and forecast developments in recovered paper markets around the world.

International trade in recovered paper will continue to boom and Asian papermakers will search worldwide for new supplies as recovery rates are tested in the developed world.

The report reveals India’s growing demand for imported recovered paper, and new to this edition of this report are pulp and recovered paper demand and trade for over one hundred countries.

The report details usage, recovery rates, trade balances and price forecasts until 2014.

The study team leader, Rod Young, who has been analyzing the fiber and paper markets for over thirty years, predicts “that the supply side of the recovered paper market will see a lot of activity in the upcoming five years. Rising prices for recovered paper, along with huge increases in demand, would imply that larger companies will both be needed and interested in the supply side of this market.” He continued, “Mergers and acquisitions should be an active field in this industry.” Leading users and suppliers of recovered paper globally and by region are covered in the final chapter of the study.

Rod Young is supported on the study team with Bill Moore and Esko Uutela, the founding author of the study with EU Consulting, and RISI Economists Kurt Schaefer, Hannah Zhao and Levi Li.