WSRA RECYCLING CONFERENCE 2013

Transcription

1 WSRA RECYCLING CONFERENCE 2013 Susan Choi RVP, Western Region America Chung Nam The Commodity Market

2 America Chung Nam 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 postindustrial grades Majority of paper we export are used at our affiliated mill Nine Dragons Paper

3 America Chung Nam Global Offices

4 Nine Dragons Paper

5 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

6 Inner Mongolia Beijing Shenyang (2014) Tianjin Chongqing Leshan Guangzhou Hong Kong Pearl River Delta Shanghai Yangtze River Delta Taicang Quanzhou (2013) Dongguan

7 Nine Dragons Product Line Linerboard Kraftlinerboard Testlinerboard White top linerboard High-performance corrugating medium Corrugating Medium Light weight highperformance corrugating medium Duplex Board White Board Printing and Writing Paper 7

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9 Looking Back at 2012 OR

10 $/ton Based on OBM Data 2012 Pricing Chicago OCC, ONP, Mixed Paper Mix ONP OCC 20 0 Source: Pulp and Paper Week

11 U.S. Recovery Rate and Volume Year Recovery Rate (In Million tons) Domestic Consumption (In mil tons) Exports (In Mil tons) Domestic Consumption % % % % % % % % % % Source: RISI Estimates

12 2012 Domestic Use of Recovered Paper in U.S. 57% Domestic Consumption Exports 57% of the 51.4 million tons of recovered paper are consumed domestically in 2012 Source: RISI Estimates

13 2012 Export of Recovered Paper from the U.S. 5.3% 5.5% 7% 3.4% 70% to China China India S. Korea Mexico Canada Other 15.5 million tons (70%) of U.S. exported recovered paper went to China in Source: RISI Estimates

14 US Export Regions PNW 5% MW 13% NE 23% SW 41% SE 15% S 3%

15 Major Factors that Influences the Export Regions Population Shipping vessel space Availability of ocean containers Logistics infrastructure such as rail and distribution centers Proximity of domestic paper mill consumptions

16 Panama Canal Expansion

17 Panama Canal Potential Game Changer 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

18 Chinese Imports from Major Sources in 2011 and 2012 Others 15% Europe 29% United States 43% Japan 13% Source: China Customs

19 China s Need For Cleaner Environment

20 Green Fence Initiative 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

21 European Governments Recycling Initiatives 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

22 Future Of Our Industry 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

23 Thank You Susan Choi

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