Market Continues to be Affected by National Sword Effort

Every container entering China is now being inspected by the Chinese customs authorities using x-ray machines. These inspections are causing longer shipping times. Ports without an x-ray machine are advised to open each container for examination. Ports without the proper resources for these inspections are being closed.  In order to validate their weight, containers will also be weighed.

The delays at these ports have had a significant impact on exporters. According to the Recycling Association, the level of non-fiber impurities as well as excessive moisture in bales of paper exports will also be checked during the increased inspections. By doing so, this campaign shows how important quality is in paper exports.

Since exporters had already adjusted to the Green Fence Enforcement Campaign, which began in 2013, National Sword may not result in as many returned bales for some North American exporters. The Green Fence set strict requirements on the quality of exported materials.

With the use of x-ray machines, which ensures that material quality is of the highest standards, National Sword is helping evolve the export process.

The Institute of Scrap Recycling Industries is working on communicating with exporters so that they can provide them with information concerning delays. Having this information ahead of time allows for companies to include longer delivery times in their contracts.

National Sword is having a major impact on recovered fiber prices. The market decline corresponds with the timing that the National Sword campaign was launched. Within a 30-day time period, people went from paying high prices for paper to almost no paper being ordered.

You can click here to read the full write-up from Resource Recycling.

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