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Paper price collapse blows hole in Britain's
recycling strategy
Britain's
paper recycling strategy is under increasing strain after a
collapse in waste prices in recent weeks, according to a
leading industry organisation.
Britain lacks the capacity to handle the rising amount of
paper being recovered for recycling, and its dependence on
exports has left it vulnerable to a rapid price collapse,
the Confederation of Paper Industries said yesterday.
Far Eastern buyers had been snapping up about three-quarters
of Britain's exports of paper for recycling, but demand from
the region has almost disappeared recently, the CPI said.
"With no obvious signs of Far East buyers returning to the
market soon there is a serious possibility that storage of
recyclables may end up being a high-risk strategy with huge
costs to those requiring storage, including the taxpayers
through local authorities," the CPI said in a statement.
"The worst-case scenario is that some material collected for
recycling could go to incineration or landfill," CPI
recovered paper sector manager, Peter Seggie, said.
The UK collects about 8.6m tonnes of paper and board for
recycling every year but UK paper makers can only handle 4m
tonnes, resulting in dependence on export markets, primarily
the Far East and Europe, to take the remainder.
According to the CPI, far eastern buyers had been taking 3m
tonnes but have backed away, triggering a price collapse in
some paper grades. High prices have seen local authorities
and commercial organisations such as supermarkets and
printers generating cash by selling paper and packaging for
recycling, but they face this income being reduced. |