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Chinese boxboard producers face fiber deficit

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SHANGHAI (Scrap Register): The restrictions China imposed this year on scrap fiber imports have created at least a 6 million mt fiber deficit for China’s boxboard industry, according to RISI International’s World Boxboard Study.

The shortfall also will reduce Chinese boxboard exports sharply, RISI added, including exports of products coming back to the U.S. market.

As China’s market share of boxboard exports falls, low-cost producers in Brazil and Chile will be in a position to strongly increase exports, RISI predicts.

U.S. recovered fiber that doesn’t go to China could remain available for U.S. producers, lowering their production costs, RISI adds.

Global trade tensions could have a major impact on boxboard producers in the Americas – as well as their suppliers and customers.

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