Waste Export New Record
03-03-2010
Not surprisingly the December quarter 2009 established a new export record of 388,300 tonnes, an increase of 50,000 tonnes, consisting mainly of Cardboard ( OCC ) and Mixed papers, being 180,000 and 150,000 tonnes respectively. A drop off in bleached papers and newspapers was recorded, but this may be influenced by co-mingling of waste materials as well as a seasonal late December slow down.
 
The commissioning of Visy PM2 at Tumut has surprisingly not yet influenced the volume of OCC export. Possibilities for this being that waste is more profitable to export than medium or test liner, as well as the over capacity of finished board globally and the higher shipping commodity rate for finished product compared to genuine waste paper.
 
China export share has also increased for OCC and Mixed to 78%, followed by Indonesia at 12%, with the balance under 4%.
 
Export pricing for the December quarter was also considered back to the 07/08 average. Over issued newspapers was the exception, reaching domestically AUD380 per tonne, which in comparison, will differ greatly for the second quarter of 2010 following the collapse of the home insulation subsidy of AUD1250 per house in late February. This additional supply is being snapped up by Norske Albury newsprint mill.
 
The status quo remains at Amcor with both Fairfield and Botany mills until at least June 2011, most likely extending another year or until the Fairfield site is sold for residential development.