Market conditions often change and cycle more quickly than the evolution of infrastructure and development of key business relationships. In order to remain relevant, paper recyclers need to have a long-term strategy that acts as a foundation for making short-term business moves. Kelly McNamara of Numera Analytics shared her thoughts with the industry. Here are some of her key take away messages.
- China will continue to enforce the strictest standards.
- Global capacity expansions are on the rise and are expected to outstrip demand over the next 3 years. Due to growing manufacturing outside of China and restrictive Chinese recovered fiber import policies which allows others to be more competitive in terms of inspections and quality expectations.
- Growing demand for OCC will put upward pressure on prices in the long-term as a result of capacity growth and recovered fiber based containerboard making up a larger share of the containerboard market.
If you would like more information or have questions, feel free to contact ISRI Research Analyst for Commodities, Bernie Lee.