COVERAGE NOTE: Proposed changes to NA Export RCP price assessments
In light of China’s ban on imports of “solid waste,” including recovered paper, that is to take effect on Dec. 31, 2020, Fastmarkets RISI is proposing several changes to its North American export recovered paper price assessments.
This includes changing the destinations of FAS price assessments for US recovered paper grades that have established markets in other countries. The export grades that will shift from China to other destinations, starting Jan. 6, 2021, are:
• Double-Sorted Old Corrugated Containers (DSOCC) (12) to non-China Asia – Price IDs 12100, 12101, 12102
• New Double-Lined Kraft Cuttings (DLK) (13) to non-China Asia – Price IDs 1024, 1037, 1319
• Coated Groundwood Sections (CGS)/Old Magazines (OMG) (44, 10) to non-China Asia – Price IDs 11859, 11860
• Sorted Office Paper (SOP) (37) to non-China Asia -Price ID 1025, 1038, 1322
As China has imported fewer tons of US recovered paper, US exporters have shifted these tons to other markets, and Fastmarkets RISI will reflect these main markets in price assessments.
Fastmarkets RISI proposes to discontinue the following cost and freight (CFR) assessments:
• DLK (13) to China – Price IDs 1030, 1043
Please send comments to email@example.com, indicating “RCP Export Destinations” in the subject line of the email, by Dec. 15. Additional insight including volumes, grades, and frequency of shipments also would be insightful.
Fastmarkets RISI will publish its final decision and timeline for any changes as soon as possible after this date for implementation by Jan. 1, 2021.
For more Fastmarkets RISI coverage notes please see here.
For more information on Fastmarkets RISI’s methodology for North America RCP, please see here.