COVERAGE NOTE: Changes to US SRPN Assessments for Import/Export to China – Consultation

In light of China’s new 0.5% rule on contaminants for imported recovered paper and following industry consultation, RISI is considering making the following changes to its recovered paper coverage:

PPI Pulp & Paper Week:

  • Change the destination title of US Sorted Residential Paper and News No. 56 FAS US ports from China to Asia (price IDs 1311, 1309, 1310, and 1326);
  • Discontinue assessments of US Sorted Residential Paper and News No. 56 exports CFR China (price IDs 1041 and 1028).
  • Launch new price assessments for US export of Sorted Clean News (58) FAS US at Long Beach, CA, New York-New Jersey, and Oakland, CA, ports, and Chicago container yard.

PPI Asia:

  • Discontinue assessments of Old newspapers (6 and 8) from the US CIF main ports in China (Price ID 615);
  • Launch new price assessments for US exports of Sorted Clean News (58) CIF main ports in China;
  • Launch new price assessments for US Sorted Residential Paper and News No. 56 CIF Southeast Asia and Taiwan.

These potential changes are necessary because import volumes of US SRPN No. 56 to China have declined significantly. In addition, SRPN, under the Institute of Scrap Recycling Industries’ (ISRI) recovered paper definitions, should contain no more than 2% prohibitives and 3% outthrows, based on ISRI specifications, which is in excess of the 0.5% rule in China. As a result, RISI is unable to maintain reasonable assessments of the value of SRPN No. 56 for delivery to China.

RISI will undergo a consultation on this proposal, with the potential that the changes would take effect starting Apr. 5, 2018.

For comments and queries, please email pricing@risi.com.

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