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Genus Recycling expects challenging markets in 2023

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Press release: 1 December 2022

Genus Recycling expects challenging markets in 2023 but material should keep moving

Bury-based Genus Recycling has warned that 2023 looks set to be a difficult year for the recycled paper market.

The company, which was formerly known as Materials Recycling & Consultancy, is predicting instability in the markets throughout 2023.

However, after growing its turnover from £7.6 million in 2020 to £17.7 million in 2021, which helped achieve a runner's up award as Exporter of the year in the Greater Manchester Chambers of Commerce Awards 2022, Genus Recycling will continue to keep moving material into European mills next year due to its long-term supply agreements.

Genus Recycling director Rick Waterson said: "Working with our partners in Europe we have developed long-term established strategic outlets with contracts that we have grown, and this is a continued process. Indeed, we are excited at the further opportunities we are working on for 2023 with our customers and we are looking forward to announcing throughout 2023. This is assisting us in increasing our turnover and volume supplies into Europe and the UK"

"Looking at the recovered paper market we have seen unprecedented high prices in 2022 for some key recycled paper grades. This came about due to competition from new mill capacity, especially in Europe, and changing consumer habits meaning more people are buying online.

"But with people paying more for energy and their mortgages across the world, we would expect weaker demand for paper-based packaging as they cut-back on spending."

Director Patrick Kilcoyne added: "Here at Genus Recycling we have decades of combined experience working in the recycled paper industry. We've been through unstable times before and it will be interesting to see, how volumes and prices playout throughout 2023. 

"However, what we know is that experienced traders like us have been able to keep material moving during these difficult times, finding mills that need fibre in UK and Europe and achieving the best possible price we can. Even during the uncertainty of Brexit, we were able to serve and grow with our European mill partners.

"After the high prices seen in much of 2021 and 2022, it would be unrealistic to expect material to stay at these levels in Europe. The second half of 2022 has seen reductions in prices. However, in the last few weeks we have seen Far East buyers re-enter the market causing pricing and demand to increase. Looking at the news from China and the further Covid restrictions it appears that it could be short-lived, and demand in the whole region could reduce again."

"Markets have been volatile for the last few years, with some mills in some countries coming in strongly and then pulling back once they have the material they need. We expect this volatility to continue, especially in an environment where availability of material and demand is likely to be lower than in the last few years."

Family-owned Genus Recycling has continued to expand and now has a team of eight people, plus three dedicated contractors. It expects to recruit more people over the coming years as it develops more relationships with waste management companies, print rooms, and retailers/manufacturers.

Director Billie Chadwick added: "Genus Recycling already works closely with our suppliers and UK and European mills and we are continuing our rapid expansion by sourcing and trading more and more material every year.

"Our deep experience of the recycled paper market means we can provide more services alongside our trading provision. We can provide equipment, collection and logistics support, as well as advise on reporting and legislation. This ensures our customers can be confident they are getting a service they can trust, and that their material is recycled at state-of-the-art paper mills."

For more information, visitwww.genusrecycling.comor call Paul Sanderson at Hanicke Robins Sanderson on 0774 778 5980 or emailpaul.sanderson@harosa.com