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Paper consists of fibers, with the long fibers preferred by recyclers. Fibers become shorter when paper is shredded and recycled over and over. Once they are too short for making white office paper they are used for making into tissue or toilet paper, which is less valuable for recyclers.
Shredding paper actually lowers the grade of paper from high grade to mixed grade.
Mixed grade paper is still recyclable, but not accepted by all recyclers.
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