THEItaly is confirmed among the best countries in the paper recyclingconfirming his own second place in Europe. The report Unirima, (National union of companies for the collection, recovery, recycling and trade of waste and other materials) gives a snapshot of 2022 with a production of the raw material, the so-called "waste paper" which reached around 2021 million tons in 7 (+3% compared to the previous year) equal to 13,3 tons/minute, a result that places Italy in second place in Europe, overtaking France and Spain, with Germany in first place.
Paper recycling: the added value of Italy compared to European competitors
A more than deserved second place given the value added offered by Italy in this type of business. “The added value of the sector lies above all in a capacity for structural adaptation and in the ability to respond to the crises that have impacted the waste paper market” explains Giuliano Tarallo, president of Unirima. “Despite the tsunami of recent years, the sector has held up also thanks to the flywheel of exports which represent a driving force and still remain a fundamental outlet for the structural surplus (about 27%) of waste paper compared to internal needs".
The great placement is result of a capillary network of waste treatment plants, are about 600, to which the separate collections of paper and cardboard coming both from the Municipalities and from commercial, artisanal, industrial and tertiary activities to produce the end-of-waste raw material, the so-called "waste paper" destined for paper mills, says a note from Unirima.
Unirima's alarm: the collapse in recycled paper prices and the difficulties of paper mills
But the main one business association of the sector, which has 20.000 employees and an annual turnover of around 4 billion euros, warns: ”the price collapse of recycled paper by 69% in September risks putting the sector in crisis. Also in 2021 they are decrease exports, (from 1,85 million to 1,28 million tons) which in any case remain a fundamental outlet for the structural surplus (about 27%) of waste paper with respect to internal needs. For this reason, Unirima is asking for government intervention “to deal with the general crisis due to the sharp slowdown of downstream industrial activities (paper mills), which has not only led to a sharp reduction in the prices of waste paper but also an increase in the quantities to be stored in the plants” says the note.
Italy excels in Europe even surpassing the EU targets
That the industrial sector of waste paper represents a point of excellence of the circular economy in Italy is also demonstrated by goals achieved in the recycling of cellulosic packaging only with thecommunity goal forecast for 2025 (75 pct) reached and exceeded as early as 2009 and, starting from 2020, the 2030 target (85 pct) was also exceeded.
2021 consolidated the trend, with a recycling rate which stood at 85,08 pct. Of the 4,46 million tonnes of paper and cardboard packaging recycled in 2021, around 1,9 million comes from differentiated collection of urban waste (domestic and "similar" collected under a private right, therefore including the part of "ex-assimilated" from commercial activities), while the rest of the packaging recycled cellulosic, i.e. about 56 pct, derives from collection from economic activities carried out, outside the municipal privatization, by private companies which therefore confirm their ever-increasing role in the pursuit of paper recycling objectives.
“Today, the impact of the war in Ukraine and the consequent increases in energy prices are bringing out some critical issues in the supply chain, even if the waste paper sector does not slow down” warns Unirima in the note.
The trend in international paper prices: a sharp decline since August
In the first half of 2020, the various lockdowns and the temporary closure of some businesses caused a significant decrease in the production of paper and cardboard packaging. The collection, insufficient compared to the demand for waste paper, has thus led to an initial price increase, which then stabilized in the second half of the year. With the economic recovery led by China and the United States there has been a new increase in demand, paper prices have undergone a sharp increase for stabilize in spring 2021, when average prices stopped at around an average value of 108 euros per ton for mixed paper and cardboard and 118,5 euros per ton for corrugated cardboard, to then increase in the first months of 2022 until reaching the average value of 135 euros per ton.
The abrupt trend change arrived at August 2022, with the quotations that are collapsed up to record a September 2022 a reduction of 69 pct compared to the July average price. Among the factors that have brought about this situation are the standstill or sharp slowdown in the activities of the downstream industrial sector, i.e. the paper mills, connected to the increase in energy prices.
Still critical issues in the management of non-hazardous special waste
Alongside the new critical issues, however, there are also those that have already characterized the sector for several years. Among these the important theme of management of non-recyclable waste classified as non-hazardous special waste (CER 19 12 12). This is the waste generated by waste treatment processes aimed at the production of raw materials “end-of-waste”. Overall, it is an important flow of material, which should be managed with a view to circularity. In general, while the Ispra data show an increase in this type of waste, there is a growing one difficulty in finding the facilities who should treat them and a consequent increase in costs.
Even in the production of recycled paper, Italy is second in Europe and is growing faster than its competitors
La world production of recycled paper is around 240 million tons, therefore, more than half of the cellulosic raw material produced in the world comes from waste paper. All in all, China and the United States together they alone account for about half of the total. In 2021, the European Union instead produced 90,2 million tons, with Germany settling on 26%.
Italy also in this sector it is in second place in the European Union. But compared to its main competitors last year showed a greater growth with +11 pct, against Germany's 8 pct, France's 7 pct and Spain's 6 pct.
However, Asia remains the main producer of recycled paper, with 44% of the total produced in the world, even if, starting from 2018, world production has dropped from 250,19 million tons in 2018 to 239,8, 2020 million tons in XNUMX. A reduction that affected all geographical areas except the Middle East and Africa, which recorded an increase.
Paper production seen on the rise, replacing less sustainable packaging
La paper production is intended for increase in the coming years also for the tendency to replace the less sustainable packaging, especially those made of plastics. In 2021 the production of paper for innovative uses, precisely in the context of this "substitution effect", is grew by 9,6 pct and, although these goods still have a marginal share in overall paper production, the changes underway are happening rapidly. Although in 2021 the demand for waste paper in several countries was supported by an increase in the supply of domestic production, international trade in waste paper will still remain essential for the future, both to balance surpluses and to guarantee a market competitiveness and the possibility for all states to use high quality recycled raw materials.
For about 15 years, Italy is a net exporter of waste paper with a value that was 1,28 million tons in 2021, against imports of 0,33 million tons. With the gradual development of differentiated paper and cardboard collections, the ability of recycling and trade operators has ensured with exports an outlet for the surplus of waste paper with respect to the country's needs and, at the same time, to overcome the European goals. Also in the first half of 2022 India, Indonesia, Austria and Germany are confirmed as the main partners.
