Coverage Note – Launch of recycled pulp assessment CIF China and change in destinations for several RCP assessments

Following an open consultation to seek feedback from the industry last month, Fastmarkets RISI has decided to launch two new recycled brown pulp price assessments for China from January 2021.

At the same time, Fastmarkets RISI will discontinue assessments for recovered paper (RCP) imports to China and shift to non-China Asia for double-sorted old corrugated containers (DSOCC) (12), new double-lined kraft cuttings (DLK) (13), coated groundwood sections (CGS)/old magazines (OMG) (44, 10), and sorted office paper (SOP) (37). Fastmarkets RISI will discontinue the cost and freight (CFR) assessments for DLK (13) to China.

With China set to ban RCP imports from the beginning of next year, the country’s demand for recycled brown pulp is expected to keep growing. Fastmarkets RISI has been monitoring the situation over the past two years, tracking prices for the new product since July 2019.

The recycled brown pulp assessment will be published monthly on the last Wednesday of each month from January 27, 2021. They will appear in PPI Pulp & Paper Week, PPI Asia, the Fastmarkets RISI online portal and mobile app, and in the Chinese publications operated by Fastmarkets RISI’s Shanghai-based subsidiary UM Paper.

The recycled brown pulp assessed is furnished mainly with old corrugated containers (OCC) imported from the USA. The assessment will reflect CIF prices at main ports in China for product shipped from the USA, India, Southeast Asia, and Taiwan.

The discontinuation of assessments for DSOCC, DLK, CGS, and SOP exports to China in PPI Pulp & Paper Week is due to a substantial decrease in demand from China for these grades due to its ban.

PPI Pulp & Paper Week will continue to assess non-China Asia prices for mixed paper, OCC, DSOCC, DLK, SRPN, CGS/OMG, SOP, and sorted white ledger (SWL).

PPI Pulp & Paper Week also will continue to assess domestically-sourced USA grades.

For comments or queries, please email pricing.risi@fastmarkets.com, mentioning “US RCP.”

For more information on Fastmarkets RISI’s methodology for US RCP, please see here.

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