Recovered Paper Industry Faces Mounting Regulatory, Trade, and Market Pressures in 2025

Recovered Paper Industry Faces Mounting Regulatory, Trade, and Market Pressures in 2025

BIR Annual Report 2025

The Pulp and Paper Times

The global recovered paper industry continued to struggle through 2025 as volatile prices, weak demand, shipping disruptions, and growing regulatory uncertainty created one of the most challenging operating environments in recent years, according to an article by Francisco J. Donoso published in the 2025 annual report of Bureau of International Recycling.

Donoso noted that the sector found “few crumbs of comfort” during the year, with turbulence affecting nearly every segment of the recovered fibre business. While lower grades of recovered paper had already experienced severe price volatility in previous years, 2025 witnessed increasing instability even in higher grades, creating additional uncertainty for recyclers, traders, and mills worldwide.

The industry also grappled with subdued global demand, sharp price differences across regions, and persistent shipping challenges that made freight costs and delivery schedules difficult to forecast. Rising tariffs and nationalist trade policies further complicated international business operations, adding pressure to an already strained global recycling supply chain.

According to the report, the sector entered 2026 with even greater concerns, particularly in Europe, where businesses are closely monitoring the implementation of the revised European Union Waste Shipment Regulation (WSR). Industry participants fear the new regulation could significantly disrupt recovered paper exports to non-OECD countries, which have long served as important destinations for surplus fibre generated in Europe.

The revised WSR introduces stricter compliance requirements, including permits and proof that exported material will undergo environmentally sound treatment at destination facilities. While the regulation aims to strengthen environmental safeguards, industry leaders warn that the administrative burden and additional documentation requirements could increase operational costs and slow export flows.

Even if exporters successfully comply with the revised rules and maintain shipment volumes, companies are expected to face significant resource allocation challenges in managing expanded traceability and reporting obligations.

The report highlighted concerns raised during industry discussions in Valencia, where global recycling leaders warned that increasing restrictions on cross-border trade could threaten the sustainability of the circular economy itself.

Brian Henesey reportedly cautioned that mounting trade barriers are endangering the “finely-tuned web of global interdependence” on which the recycling industry has depended for decades. According to Henesey, the global system has historically allowed recovered materials to move efficiently from regions where they are discarded to regions where demand exists.

Similarly, Julia Ettinger questioned the consequences if Europe’s annual recovered paper exports — estimated at between five and eight million tonnes — were effectively blocked by legislation. Industry experts argued that restricting these export flows would create structural oversupply in Europe while depriving fibre-deficient regions of essential raw material, ultimately undermining environmental objectives rather than supporting them.

The article stressed that regulations such as the WSR should include practical transition periods, clearly defined criteria, and stronger technical support from authorities to avoid major market disruptions while pursuing environmental goals. Industry stakeholders also emphasized the importance of consistent “end-of-waste” criteria to reduce unnecessary restrictions on recyclable materials moving across borders.

In this context, Francesco Sicilia explained during the Valencia meeting that Italy had introduced a decree establishing criteria for paper and board materials to qualify as “end-of-waste.” The measure is expected to improve regulatory clarity, standardize recycling processes, and potentially expand opportunities for certain materials to remain outside the scope of the WSR.

Meanwhile, logistics challenges remained another major concern throughout 2025. Nuria Rubio highlighted continuing instability in the shipping market and stressed the importance of maintaining flexibility within supply chains to manage disruptions effectively.

Additional concerns emerged from Asia and North America. Jun Park stated during the BIR meeting in Bangkok that newly introduced Chinese pulp regulations aimed at reducing contamination would likely increase demand for cleaner OCC (Old Corrugated Containers). At the same event, Brian Reese outlined mounting challenges for US OCC exports to Southeast Asia, including growing tariff-related pressures.

The report ultimately portrays a global recovered paper sector navigating a highly uncertain landscape, where environmental regulation, trade policy, logistics, and market dynamics are becoming increasingly interconnected.
 

Published at : Jun 30, 2026 08:11 AM (IST)

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