Due to declining demand for used cardboard in China, which has been its main export destination, its price has begun a southward trend.
Demand for most other types of recycled paper such as newspapers and magazines however, has been relatively stable. The demand had been on an upward trend in the recent past and this had even forced mills in the United Kingdom to increase their prices by up to five pounds in order to compete effectively with the demand from China.
Due to the downturn that is being experienced now, two of the major buyers in China have temporarily halted their operations. The problem is being attributed to the biting credit crunch that is being experienced all over the globe which has made mills in China lower their demand for recycled cardboard. As a result of the reduced demand prices have gone down by up to ten pounds for every one thousand kilograms of recycled cardboard paper.
In a report by the Bureau of International Recycling, Ranjit Baxi, the president of the Bureau of International Recycling paper division, admitted that exporters of recycled fibre in quarter one of year 2008 were confronted with big challenges of trying to meet demand for their products from abroad which was oscillating between firm and strong and at the same time dealing with a fickle dollar.
The president of the Bureau of International Recycling (Paper Division) attributed the robust demand from China for recycled waste paper from the United Kingdom in the first quarter of the year to the dearth of freight containers for export markets that were experienced in the United States.
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