India Poised to Increase Recovered Paper Demand as China Tightens Dry Pulp Imports

At the recent Bureau of International Recycling (BIR) Paper Division meeting in Bangkok, market experts highlighted India's growing demand for recovered paper amid China’s new strict regulations on dry pulp imports. China's 0.5% impurity limit on dry pulp, enforced since October 2025, has caused delays and price crashes, impacting processors in Thailand and Malaysia. Despite this, wet pulp imports remain unaffected. India, the fastest-growing paper market with over 7.5% annual production growth, continues to rely heavily on recovered paper imports, which account for 60% of its supply. Indian mills face high customs duties, prompting industry calls to reduce rates to zero percent. The global recovered paper market is experiencing volatility with shifting trade flows towards India, while the U.S. and Europe are prioritizing domestic consumption amid tighter export controls and rising demand from local mills. The new Global Auction for Recovered Paper platform aims to improve market transparency and efficiency.