Updated Jan 18, 2023 12:20

Recovered Paper Market in Malaysia

Market Overview
In , the Malaysian recovered paper market decreased by -% to $ for the first time since 2018, thus ending a three-year rising trend. Over the period under review, consumption, however, saw a notable expansion. As a result, consumption reached the peak level of $, and then shrank significantly in the following year.

In value terms, recovered paper production contracted to $ in estimated in export price. Over the period under review, production continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in with an increase of % against the previous year. Over the period under review, production hit record highs at $ in 2019; however, from to , production stood at a somewhat lower figure.


Consumption
In , consumption of recovered paper decreased by -% to tons for the first time since 2014, thus ending a seven-year rising trend. Over the period under review, consumption, however, saw a tangible increase. As a result, consumption reached the peak volume of tons, and then fell rapidly in the following year.

The size of the recovered paper market in Malaysia reduced dramatically to $ in , declining by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, posted a notable increase. As a result, consumption attained the peak level of $, and then contracted significantly in the following year.


Market Forecast
Driven by increasing demand for recovered paper in Malaysia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Malaysia increased significantly over the last fifteen-year period (from % to %).


Trade Balance
Malaysia remains a net importer of recovered paper; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.