wsra recycling conference 2013 - memberclicks · 2016-12-22 · wsra recycling conference 2013 acn...
TRANSCRIPT
Susan Choi
RVP, Western Region
America Chung Nam
The Commodity Market
WSRA RECYCLING CONFERENCE 2013
ACN founded in 1990 in California.
Projected to exceed 12 million tons of recovered paper to China in
2013
Main paper grades are OCC, ONP, Office Paper, and Mixed Paper
Main plastic grades are PET, HDPE, LDPE, Mixed Rigid and post-
industrial grades
Majority of paper we export are used at our affiliated mill – Nine
Dragons Paper
America Chung Nam
America Chung Nam Global Offices
Nine Dragons Paper
Established in 1995 by the owners of ACN
ND is the largest recycled containerboard producer in Asia and #2 in the world
Current production capacity is over 13 million tons, 33 paper machines in 5 mill complexes
By 2014, production capacity will exceed 14 million tons with our newest greenfield mill complex
Tianjin
Shanghai
Beijing
Inner
Mongolia
Taicang
Dongguan
Guangzhou
Pearl River Delta
Chongqing
Leshan
Hong Kong
YangtzeRiverDelta
Quanzhou(2013)
Shenyang(2014)
7
Corrugating Medium
High-performance
corrugating medium
Linerboard
Kraftlinerboard Testlinerboard White top
linerboard
White BoardDuplex Board
Light weight high-
performance
corrugating medium
Nine Dragons Product Line
Printing and Writing Paper
Looking Back at 2012
OR
$/t
on
Ba
se
d o
n O
BM
Da
ta
2012 Pricing – ChicagoOCC, ONP, Mixed Paper
0
20
40
60
80
100
120
140
Mix
ONP
OCC
Source: Pulp and Paper Week
U.S. Recovery Rate and Volume
Year Recovery Rate (In Million tons)Domestic
Consumption (In mil tons)
Exports (In Mil tons)
Domestic Consumption
2012 64.30% 51.4 29.5 21.9 57.39%
2011 66.80% 53.6 30.5 23.1 56.90%
2010 63.50% 52.24 31.55 20.69 60.39%
2009 63.60% 50.16 29.16 21 58.13%
2008 57.70% 52.15 32.65 19.5 62.61%
Source: RISI Estimates
57% of the 51.4 million
tons of recovered paper
are consumed
domestically in 2012
2012 Domestic Use of Recovered Paper in U.S.
Domestic
Consumption
Exports
57%
Source: RISI Estimates
15.5 million tons (70%) of
U.S. exported recovered
paper went to China in
2012.
2012 Export of Recovered Paper from the U.S.
China
India
S. Korea
Mexico
Canada
Other
7%
5.5%
5.3%
3.4%
Source: RISI Estimates
70% to
China
US Export Regions
PNW 5%
SW 41%
MW 13%
NE 23%
SE 15%
S 3%
Population
Shipping vessel space
Availability of ocean containers
Logistics infrastructure such as rail and distribution centers
Proximity of domestic paper mill consumptions
Major Factors that Influences the Export Regions
Panama Canal Expansion
Current 5000 TEUs (2500 x 40’ containers) vessel capacity;
Future 13,000 TEUs (6500 x 40’ containers) vessel capacity
Increases vessel space and ocean container availability to East
Coast and Gulf Coast ports
Lowers ocean freights allowing export to be more competitive in prices and consistent movement
Increases the supply of fibers as distribution channels changes to
capture the advantage of more efficient logistics
Panama Canal Potential Game Changer
Chinese Imports from Major Sources in 2011 and 2012
United States
43%
Japan
13%
Europe
29%
Others
15%
Source: China Customs
China’s Need For Cleaner Environment
China Customs will strictly enforce quality compliance of imported
recovered materials
Higher percentage of containers will be opened for detailed
inspection
China Customs will strengthen internal control and communication
China Customs will initiate joint programs with foreign
governments
Green Fence Initiative
Some European governments have taken a more active role in
managing the quality of collection programs
UK Resource Management Minister: “While some MRFs already
provide quality material, … more consistently across the industry.”
Prosecute recyclers who harm the environment
European Governments Recycling Initiatives
US recycling industry requires consistent demand from domestic
and overseas markets
Pricing and quality are critical in keeping US recovered fibers
competitive in the global markets
Recyclers need to generate not just “green” but “clean” materials
Recycling industry contributes to the economy and job growth
Future Of Our Industry
