The global recovered paper (RCP) market witnessed a strong upturn in 2021; it cooled off modestly in the first half of 2022 and then collapsed in the second half for various reasons. As the world enters 2023, the outlook for the RCP market remains uncertain.
The biggest challenge for RCP markets in 2023 is the uncertainty in demand from the paper packaging sector. The need for paper-based packaging products has increased with the increasing awareness of environmental sustainability and the rise in e-commerce. However, the ongoing COVID-19 pandemic has disrupted global supply chains and logistics, leading to a shortage of raw materials and causing price increases. This has made it difficult for the paper packaging sector to estimate their demand for RCP and plan accordingly.
While there are some signs of hope, especially from Asia, making a reliable prediction with so much uncertainty facing the paper and fiber industries is challenging. The lifting of import duties by China on imports of 67 kinds of paper and paper-converting products could boost its intake of PAB and recycled pulp, which may affect the RCP demand/supply balance in RCP export regions. However, it remains to be seen how much of an impact this will have on the global RCP market.
Another factor that could potentially impact the RCP market in 2023 is the increasing demand for sustainable products. The growing awareness of environmental issues and the need for sustainable solutions has led to a surge in demand for recycled products, including RCP. This could potentially drive up the demand for RCP, but it remains to be seen whether this trend will continue throughout the year.
In conclusion, the outlook for the global recovered paper market in 2023 is uncertain, with the uncertainty in demand from the paper packaging sector being the biggest challenge. While there are some signs of hope, it is difficult to make reliable predictions with so many uncertainties facing the paper and fiber industries. Only time will tell how the RCP market will perform in 2023.
Another factor that may impact the recovered paper market in 2023 is the ongoing COVID-19 pandemic. The pandemic has disrupted global supply chains, caused labor shortages, and increased shipping and transportation costs. These factors have significantly impacted the paper and pulp industry, affecting the availability and price of raw materials and the production and distribution of finished paper products.
Despite these challenges, some favorable trends could help to support the global recovered paper market in 2023. For example, growing interest in sustainable packaging solutions could drive demand for recycled paper products. In addition, many countries are implementing policies and regulations to promote circular economies and reduce waste, which could create new opportunities for the recovered paper industry.
Overall, the outlook for the global recovered paper market in 2023 remains uncertain, with many factors that could impact demand and supply. While signs of hope exist, including increased demand from Asia and a growing interest in sustainable packaging solutions, it is difficult to predict how these trends will play out in the coming year. As always, market participants must stay vigilant and adapt to changing market conditions to remain competitive and succeed in the global recovered paper market.