Overview of Japanese Paper...
Transcript of Overview of Japanese Paper...
Developments in the Japanese Paper Recycling Industry, and
How the Government Facilitates the Sector
Sep 24, 2014
Masafumi Hongan
Recovered Paper Journal
Recovered Paper Journal
The Characteristics of Japanese
Recovered Paper
Quality
Stability Reliability
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Recovered Paper Journal
Sorting Rules in Yokohama-City
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Recovery Volume and Rate
(Source: PRPC)
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1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
recovery volume
recovery rate
Million tones Percent
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Major Sources of Recovered Paper
and Collection System
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Legal Framework for
Paper Recycling Business
• Waste Management and Public Cleansing Law enacted in 1970
• An exception to the law applies to four recyclable materials ( Paper, Iron, Clothing, Glass)
• Anyone can enter a paper recycling business without special permission.
• Divided recyclable business sector and solid waste business sector by law lead to defend co-mingling as material itself
Recovered Paper Journal
Status of Recovered Paper
Processors (Packers)
• 1000 packers
• 1850 baling plants
• Most are independent middle and small –sized companies
• Many long-established companies
• Deep-rooted in a certain area as local industry
• No state-owned companies and a few paper manufactures’ subsidiaries
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Largest Recovered Paper
Processors in Japan (Estimated, 2013)
Company Name Headquater Dealing Volume
(Million tons) Baling Plant
Omoto Shiryo Kobe 1.20 83
Miyazaki Aichi 1.10 57
Daiwa Shiryo Osaka 0.72 16
Kinoshita Kawasaki 0.70 25
Matsumoto Mitsuharu Shoten Kagawa 0.66 11
Fukuda Sansho Aichi 0.60 20
Hokkai Shikan Sapporo 0.60 20
Kitakanto Tsusho Ibaraki 0.50 24
Kurihara Shizai Tokyo 0.50 15
Oji Saito Shigyo Tokyo 0.45 13
Okubo Tokyo 0.45 16
Kaneko Shizuoka 0.45 18
Sanko Shigyo Tokyo 0.42 15
Yamamuro Tokyo 0.40 14
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Specific Dealing Practice in
Domestic Market
• Packers prioritize local mills with supply even when export prices are surging
• Japanese makers purchase a stable amounts of recovered paper with stable price, monthly
• Even if the finished paper price hike or change, recovered paper price hardly does
• Reliability comes first in dealing. Packers and makers have built a strong relationship
Recovered Paper Journal
Largest Domestic Users of
Recovered Paper (Paper Recycling Promotion Center, 2013)
Company Name
Consumption Volume
(Million tons) Product Grade
Oji Holdings 3.98 all grade
Nippon Paper Group 2.98 all grade
Rengo 2.27 paperboard
Daio Paper 1.93 all grade
Marubeni Group 1.30 printing, paperboard
Tokushu-Tokai Paper 0.54 printing, paperboard
Hokuetsu-Kishu Paper 0.28 printing, paperboard
Ehime Paper 0.18 paperboard
Okayama-Paper Industires 0.16 paperboard
Chuetsu Pulp & Paper 0.15 printing, paperboard
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Recovered Paper Consumption
and Utilization Rate
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paperboard paper recovery rate(Million tons) (%)
Utilization Rate of RCP Paper 41%
newspaper 75% Printing&Writing 27%
Mechanical 13% Woodfree 57%
Wrapping 5% Tissue 53% Others 2%
Paperboard 93% Total 64%
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Why Paper Grade Production is
Decreasing Slowly in Japan?
• Green Procurement Law - Enacted in 2003, obligates government authority and offices to use recovered paper pulp product
• News and publications depend on paper-The slow shift to digital devices supports paper consumption. Over issues are included 20-40%
• The resale price maintenance system has implemented by the Japanese government
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Tissue Grade Production Recovered Paper Pulp VS Virgin Pulp
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Document Destruction Industry;
Major Three Types of Service
• Personal Information Protection Law enacted in 2003
• Market scale is about 1.3 million tons
• Over 300 companies provide document destruction services
• Three types of document destruction services; on-site shredder, shredder facility and direct melting in mill
Recovered Paper Journal
Largest User of Secret
Document at Paperboard Mill [thousand tons, 2013, estimated]
【Directly Melting Mill】 • Koa Kogyo (Marubeni group) – 36 • Iwaki Daio – 20 • Oji Materia Edogawa Mill– 20 • Nippon Paper Soka Mill – 8 • Otsu Itagami (Daio group) – 6 • Rengo Yashio Mill – 6 • Rengo Amagasaki - 2 【Shredded User】 • JP corelex group – 36 • Marutomi Paper – 24 • Tsurumi Paper – 18
Recovered Paper Journal
New Investment for Recovered
Paper Consuming Mill [thousand tons per year]
Company Location Capacity Date Grade Notes
Iwaki-Daio Paper (Daio Group)
Iwaki-City, Fukushima
144 2014:Q3 Recycled light
Weight Linerboard/ Recycled Medium
Conversion
Marusan Paper (Rengo's subsidiery)
Minamisoma-City, Fukushima
180 2014:Q4 Recycled Linerboard Scrap &
Build
Tokusyu Tokai Paper Shimada-City,
Shizuoka 18 18
2014:Q3 2015:Q4
Recycled Paper Hand Towels
Scrap & Build
JP Corelex Group Fuji-City, Shizuoka
60 2015:Q1 Recycled Toilet
Tissue Scrap &
Build
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Supply-Demand Gap in Domestic Market and Import-Export Quota
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supply-demand gap import volume export volume(Million tones)
Scarc
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Surp
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Import-Based Market
Export-Based Market
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Company Name Export Domestic Total
Dom
estic
Capital
Nihon Pulp & Paper 510,000 834,000 1,344,000
Kokusai Pulp & Paper 420,000 970,000 1,390,000
Nisho-Pulp 260,000 240,000 500,000
Japan Office Pac 250,000 - 250,000
Marubeni Paper Recycle 96,000 404,000 500,000
Fore
ign C
apital
America Chung Num Japan 1,400,000 - 1,400,000
Touch International 375,000 - 375,000
Nishi-Tokyo Tsusho 350,000 - 350,000
Yamahatsu-Nihon 300,000 - 300,000
Ecomato Industry 220,000 - 220,000
Cycle Link 200,000 - 200,000
Toho-Bussan 192,000 - 192,000
Nihon-Materio 105,000 - 105,000
Others 210,000 100,000 310,000
Total 4,888,000 2,548,000 7,436,000
In 2013, Mitsuya-Sansho, Toyotsu-Certec and PR International withdrew from RCP trading business and KPP acquainted Sumisho Pulp & Paper.
Domestic, 30%
Foreign, 70%
By Capital about share of export volume
Packer, 84.8%
Trading Company,
15.2%
By Procurement Sources of domestic manufactures
Largest Japanese Exporters of
Recovered Paper [thousand tons, 2013, estimated]
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Price Fluctuation
Domestic Price VS Export Price (yen/kg)
※Shipping price at packers
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OCC-domestic ONP-domestic
MIX-domestic OCC-export
ONP-export MIX-export
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Currency Influence on the Net
Price to Export Market (JPN Yen / US Dollars) Oct. 2013
Price at $210 ($1=98JPY) 18.3Yen/kg
Sep. 2011 Price at $277 ($1=77JPY) 18.2Yen/Kg
Sep. 2008
Price at $285 (1$=107JPY) 26.5Yen/Kg
Currency Market
Recovered Paper Journal
Concentration Ratio to China from Recovered Paper Exporting Countries
Country
Amount of Export (million
tons)
Top 5 of export destination and ratio
1st Place 2nd Place 3rd Place 4th Place 5th Place
1 United States 18.90 China 70.2% India 7.3% Mexico 5.6% South Korea 5.3% Canada 3.4%
2 Japan 4.89 China 79.2% Thailand 7.4% South Korea
7.3% Taiwan 6.2% Vietnam 3.8%
3 United Kingdom 3.05 China 71.4% Indonesia 6.2% India 5.6% Netherlands 4.2% Germany 3.4%
4 France 2.89 Spain 44.5% Germany 15.4% China 14.5% Netherlands 9.5% Belgium 9.0%
5 Germany 2.72 Netherlands 40.6% China 15.4% Austria 12.9% Switherland 10.5% France 7.3%
6 Netherlands 2.65 China 50.8% Germany 18.3% Belguim 10.7% France 4.4% Indonesia 3.8%
7 Canada 2.16 China 62.2% United States
33.7% South Korea
1.4% India 1.0% Taiwan 0.5%
8 Belgium 1.73 Netherlands 46.2% China 31.8% France 6.3% Germany 6.1% India 3.6%
9 Italy 1.69 China 55.1% Indonesia 9.3% Austria 9.0% Germany 8.7% Slovenia 3.9%
10 Australia 1.43 China 71.7% Indonesia 17.6% India 3.0% Malaysia 2.2% Vietnam 1.5%
11 Hong Kong 1.04 China 97.8% Philippines 1.2% Taiwan 0.6% Vietnam 0.6% Thailand 0.1%
12 Singpore 0.68 Indonesia 49.9% South Korea
13.3% Thailand 9.4% Bangladesh 8.4% Malaysia 7.6%
Recovered Paper Journal
Four-Step-Model to Develop
Recovered Paper Market
STEP1
GDP $2000~
-Small production of paper & board per capita, while start collecting RCP
STEP2 GDP $5000~
-Emerging consumption of paper & board, depending import RCP
STEP3 GDP $10000~ -Exceed 100kg recovery volume per capita, either import or export based on the number of domestic mills
STEP4 GDP $20000~
-Turn to exporting country, and need to import some grade which export as finished paper
-India -Indonesia -Vietnam -Philippines
-China -Thailand
-Malaysia
-Japan -South Korea -Taiwan -Singapore
*GDP indicates per capita
Recovered Paper Journal
More Recovery Effort to boost
Recovery Rate
• Ban on incineration policy conducted by some local governments
• Mining other papers (uncollected RCP) from household to reduce solid waste
• Diversification of collection way; expansion of new types of drop-off collection spots
• Document destruction service to cover small offices
Recovered Paper Journal
New Types of Drop-Off Collection Spots
Recovered Paper Journal
Quality Issues
• Mills check carefully RCP whether contain inferior goods and moisture at the time it delivers
• If contain those, manufactures track the supplier or the source to improve quality
• The three major inferior goods: thermal foaming coated papers, dye-sublimation paper and perfumed paper
• Paper Recycling Promotion Center promotes local authorities and related agency to give a further sorting effort
Recovered Paper Journal
Industrial Associations’
Contribution
• Founded in 1974, consists of 35 manufactures and 536 packers
• Collect statistic :monthly consumption volume, estimated volume from paper manufacture
• Quality issue: share unusable materials and educate to improve recovery
Paper Recycling Promotion Center
• Established in 1977, consists of 809 packer members, 20 affiliated associations
• Encourages stable quality management and efficient supply chain
Japan Recovered Paper Association
• Founded in 1943 as forerunner, consists of 33 manufactures
• Statistic: monthly output, yearly detailed data
• Public relations about paper & paperboard industry
Japan Paper Association
Recovered Paper Journal
Conclusion; Future Japanese
Market Projections for 2020 • Collection volume - almost stable around over 20
million tons by collection effort
• Recovery rate – increasing near to 90%
• Quality control – crucial issue to improve by all shareholders
• Domestic Consumption volume - Gradually declining
• Supply–demand gap(= export volume) - more expansion to about 6 million tons
• Diversify export destination – head to other Asian countries
Recovered Paper Journal
About Recovered Paper Journal
• Exclusive magazine about the recovered paper market since 1992 (weekly, only Japanese edition)
• Covering market condition and current industrial news
• Articles based on original market price index, statistics and in-depth knowledge
• Contact me: [email protected]