Supply crisis, Asian RCP, OCC recycled paper prices spike
Availability is scarce, in stark contrast to previous predictions – that RCP paper supply in Asia will increase following China’s import ban from early 2021.
The cause of the supply shortage is being attributed to the global COVID-19 pandemic, which has affected China’s collection and demand for recycled pulp. But at the same time, the push by manufacturers in Europe, the US and Japan to buy stocks also increases the scarcity of exports. Rising sea freight rates, difficulty in placing containers to load RCP have also resulted in higher commodity prices.
Average price of imported recycled paper in Southeast Asia
In mid-June 2021, the price of recycled paper fluctuates by 18-25 USD/ton compared to May 2021, but the price increase has not stopped, when entering July, the price increases again by 5 – 10 USD/ton. July 15, 2021 has set a new peak of 285-300 USD/ton.
This shows that supply is tightening while demand is high, freight rates are high and lack of empty containers due to the impact of the Covid-19 epidemic is a difficult problem at the moment.