According to the source and media reports in early January, after the ban took effect on Jan 1, the mainland authorities agreed to a temporary arrangement to allow Hong Kong contractors to export paper waste to four designated mainland factories in the Guangdong-Hong Kong-Macao Greater Bay Area.

"I do hope the Hong Kong government will continue to negotiate with the mainland authorities and regularize their arrangements to prevent storage pressure piling up," the source said.

Xinhua News Agency reported early last month that several papermakers on the mainland have been raising the prices of their products since December last year, mostly by about 200 yuan ($31) per metric ton. The price upticks were partly attributable to the anticipated waste paper supply cut because of the mainland's import bans, according to reports. The price of paper recyclables in Shanghai has risen by 300 yuan per metric ton since June last year.

"The good thing for Hong Kong recyclers is that waste paper prices on the mainland are surging. It's a good sign more paper is needed. The bad thing is...we're not sure how long this special arrangement will last. Recyclers in Hong Kong will be skeptical and adopt a wait-and-see attitude," said Steuer.