However, according to the CPI, the UK continues to rely heavily on export markets, particularly the Far East, for paper and board recycling.

CPI director general David Workman said that the home trade market remained buoyant, especially demand for corrugated packaging board.

However, he said that there was the challenge of sourcing enough quality material to ensure the UK remained competitive in the global recovered paper markets.

‘Strong markets’

He added: “In order to maintain strong markets around the world we are going to have to seek agreements with both processors and reprocessors on what is and what is not acceptable quality standards.”

Elsewhere, the CPI Annual Review stated that domestic usage of recovered paper fell in 2010 by a “further 55,000 tonnes to 3.762m tonnes, but not so significant a fall as in the previous year”.

The CPI also said that figures for 2010 show that export markets remain key to the future of recovered paper and board in the UK, even during times of economic turbulence.

It stated that subdued levels of paper and board consumption in Western economies have reduced the availability and supply of recovered board to the Far East, but continued strong demand from these markets has led to higher prices for material in the global market.

The CPI explained that the European share of the recovered paper and board market in China, excluding the UK share, fell through 2010 to 18% from 23%, while the UK share actually rose from 10% to 11%.

It said that to continue its success in export markets, particularly in the Far East, the UK must remain competitive on the key buying criteria of quality and price.