There have been a large number of shutdowns in packaging companies across Asia, and the demand for waste paper continues to be sluggish!

There have been a large number of shutdowns in packaging companies across Asia, and the demand for waste paper continues to be sluggish!

Enlarge font Reduce font Date: 2023-05-26 11:02 Author: Global Printing and Packaging Industry

Limited recovered paper import supplies and weak demand continued to hit paper and board markets in Southeast Asia (SEA) and Taiwan in the two weeks to Thursday, May 18. Still, sellers saw some positive signs, albeit in smaller volumes, when some producers linked to Chinese paper mills bought imports of used corrugated container (OCC), mainly from the US.box puff pastry

Customers from Thailand, Vietnam and Malaysia snapped up US premium brown grade double sorted OCC (DS OCC 12). It will be used to produce recycled pulp and recycled containerboard products at mills in the region, a grade that most other regional buyers pay less for.baklava packaging boxes

Packing plants across Asia, from South Korea, Taiwan, Southeast Asia to India, have seen massive shutdowns due to the downturn. In Vietnam, a major paperboard producer said production at all its mills had slowed to an average operating rate of 70%, although no machines had been shut down.pastry packaging boxes

For several months, the customer has been reducing the tonnage of OCC imports, from tens of thousands of tons per month before to less than 10,000 tons per month recently. Regional producers also say they can rely on low-priced locally recycled waste paper to replenish depleted OCC stocks. The price of local OCC in Vietnam and Thailand is much cheaper than imported materials.baklava box discount code

01 Indian market rebounds

Some suppliers are pinning their hopes on a possible rebound in the Indian market, as the upcoming monsoon period in parts of the country will lead to lower domestic receipts. But other suppliers are less sanguine, pointing to Indian ports being overwhelmed with containers storing waste paper as buyers are reluctant to take delivery, possibly because they are having disputes with sellers and intending to cancel deals. This practice is not uncommon in the region and often results in orders being canceled and shipments diverted to SEA.nuts gift box

According to “PPI Pulp and Paper Weekly”, the total waste paper exports from the United States to India in the first quarter were 684,417 tons, a decrease of 28% from the previous quarter and a decrease of 36.8% from the same period last year. A large portion of India’s imports in the first quarter was mixed paper, whose imports have come under heavy scrutiny in other Asian countries. India’s OCC imports were also lower in the first quarter, at 323,032 tonnes, compared with 705,836 tonnes for Thailand and 358,026 tonnes for Vietnam.nut boxes

India was once the largest importer of U.S. waste paper after China banned its imports in 2021. The ban led to a surge in India’s exports of recycled pulp and packaging material used as recycled pulp to China, but the surge has since weakened from last year.pastries boxes

02 OCC demand declinepastries box

Prices for benchmark U.S. OCC 11 have been flat in Southeast Asia and Taiwan over the past two weeks despite weak demand in the region. European OCC 95/5 fell by $5 per ton. Most buyers in Southeast Asia have been pushing for a further $5 per tonne reduction this week, but suppliers are resisting, suppliers note.pastry box for sale

Vietnamese buyers have been pushing Japanese OCC to cut prices, hoping to buy the grade at less than $150 a tonne, a Tokyo-based trader said. “Japanese suppliers have refused to bow to pressure from overseas buyers, opting to keep waste paper domestically, even if it means renting warehouses elsewhere to store stock. They know domestic paper mills will end up with plenty of supply,” the trade said. The merchant said.pastry to go boxes