Hong Kong Environmental Protection Department

Hong Kong cuts waste paper export quota to mainland China to zero

Hong Kong's Environmental Protection Department cut the mainland China export allowance for waste paper under its collection contracts to zero from October 2026, routing collected paper to the recycled-pulp mill at Tuen Mun EcoPark, which began operating in July. The change also ended an export subsidy of HKD 400 (USD 51) per tonne; balers say their margins are now thin or negative, and one Hong Kong Island operator has cut five of its twelve staff. The department says exports to other markets are not banned and the transition has been broadly smooth.

Why this mattersA government-mandated switch from export to domestic pulping is reshaping Hong Kong's recovered-paper supply chain and the export flows that feed mainland Chinese mills.

• The Tuen Mun EcoPark recycled-pulp mill began operating in July 2026
• From October 2026 contractors' export caps for waste paper to mainland China were set at zero, directing supply to the mill
• The change ended an export subsidy of HKD 400 (USD 51) per tonne
• One Hong Kong Island baler's volumes fell from 3,500 tonnes in July to 2,773 tonnes in September and 960 tonnes in the first half of October; it cut five of twelve staff
• The mill buys waste paper at HKD 1,200-1,295 (USD 153-165) per tonne; recyclers say transport and handling costs leave thin or negative margins
• The department says overseas exports are not banned and January-September 2026 recovery of about 410,000 tonnes was similar to a year earlier

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