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Ukraine can stay without waste

Government put waste paper in list of important for Russian market goods, their export may be forbidden. About this limitation which can touch suppliers to the Ukraine we cannot tell about it but processers already asked defensive dues. However participants of the market are sure that even embargo on export does not solve the problem but main question is still volume of waste paper collecting.
Prime Minister Dmitry Medvedev signed resolution where regenerable paper and board (thus waste paper) put in the list most important goods for Russian market for their export temporary limitations or embargo can be brought.

 Such idea was talked at the beginning of the year MIT and in February deputy minister Georgiy Kalamanov discussed with participants of paper industry 10% export duty for waste paper for stimulation its processing. But at this moment there are no any limitations. This situation is not commented in MIT, there was not any answer on request «Ъ» in ECE.
Regenerable paper and board are used for production construction materials, disposable tableware, corrugated board, packing, copy paper and so on, price of raw material is more 50% production prime cost. According to the data of market participants in 2014 volume of collected waste paper in Russia was about 2,25 mln.ton. Export regenerable paper and board from Russia it is 350-400 000 t/y with price $65-75 mln, in 2014 it was supplied 349 000 ton for $65 mln, said chief  editor of agency forest analytics WhatWood Kiril Baranov.
Main market it is Ukraine (70% suppliers), 6% goes to Finland, 5% to China.
Export to Europe was unprofitable: waste paper cost there about €110 per ton and in Russia it was €150 per ton. Additional Moscow did not want to strain relation with Kiev, said one of sources «Ъ», but now the situation changed. Besides export became more profitable because of ruble devaluation, situation was complicated with decreasing import of the goods packed for transport of the board. According to the estimation of market participants in 2015 waste paper collecting will be not more 2 mlm. ton and export can be  increased on 25% almost till 450 000 ton.  
 Because of this deficit of raw material sources «Ъ» estimated approximately 1,5 mln. ton – about  –  45 %  from needs from Russian processers.
President of National packer confederacy Vladimir Chuikov notes that issue about export limitation is discussing for a long time but in this situation it became “very essential”. According to his words last years in Russia some productions were started for waste paper processing with capacity 700-800 000 ton, it became the reason of deficit of raw material and increasing the price for it. But export limitation is used for short period for normalization of prices and market, there will not be any fundamental changes but main problem it is low collecting level.
  According to the estimation of V.Chuikova during separate collecting wastes it ip possible to increase volume of waste paper in Russia almost 1 mln.ton.  


KommersantЪ. 16 June 2015. № 103

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