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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide

August 2018

Participating as industry experts in pulp and paper financing and M & A deals around the world  for over two decades, we continue to see the same mistakes made over and over.  This newsletter is designed to help you avoid costly mistakes we have seen others make.  We will be giving you one or two points each month to help improve your performance.
China's Approach to Recycled Imports

By Jim Thompson

Thus far, and for what appears to be the future, China's latest approach to importing recycled fiber seems to favor consumers in exporting countries, such as the United States. The recycled fiber markets seem confused and concerned. For the purchasers of recycled fibers not in China, this is all good news, in fact, in some grades prices have gone so low the purchasers are paying prices to keep their sources in business, not prices that reflect what might be considered the market value.

China has been a disruptive player in the recycled markets for nearly thirty years; it appears this will not get better soon. In the past, China has demonstrated periods of great restraint followed by periods of frenzied buying. They seem committed to not follow this path in the future, but if their own costs become too high, expect them to come back into the market with little notice.

Have a comment?  Email me at jthompson@taii.com.

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If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.




Jim Thompson, CEO
Talo Analytic International, Inc.

JRT Banker's Engineer