Pulp Paper & Logistics


INDUSTRY NEWS 5


Packaging grades continue to grow at expense of graphics


P


aper and board production in Europe declined by just 0.1 per cent in 2016


compared with the year earlier, according to preliminary figures from CEPI. Total production by CEPI member companies was around 91 million tonnes, with mill or machine closures compensated for by new capacity or upgrades. Production in the US and Canada is expected to be down by 1.0 per cent and 1.8 per cent respectively. Output slightly increased in South Korea (0.5 per cent), whilst it was unchanged in Japan and Brazil compared to 2015. The highest growth rates in paper and board output appear to have been recorded by Russia (3.8 per cent), India (2.9 per cent) and China (2.9 per cent). According to first estimates, global paper and board production will be up by 0.8 per cent in 2016 to reach 410 million tonnes. Sector by sector the market changes of recent years have continued with a continuing decline in the production of graphic grades and further growth in the output of packaging grades.


The weak printing and publishing businesses continue to have an impact on the overall production of graphic grades, which fell by around 3.7 per cent. Output of newsprint – used mainly for daily newspapers – is expected to fall by around 6.4 per cent. The production of graphic


papers for other communication needs – such as magazines and catalogs, direct mail, directories – have recorded contrasting developments. The decline in the output


of coated mechanical paper and coated wood-free grades reached 7.1 per cent and 5.0 per cent respectively, while uncoated mechanical paper output increased by 1.9 per cent. The production of uncoated wood free grades – mainly office paper – is estimated to have decreased by 1.4 per cent. The production of packaging


grades is estimated to have increased by around 2.3 per cent compared to 2015. Within the packaging grades, case materials – mainly used for transport packaging and corrugated boxes – increased by 2.2 per cent. The output of carton board plus other packaging board – such as small


goods packaging or book covers – grew by 2.8 per cent, and the production of wrapping grades – used for paper bag production – increased by around 1.2 per cent. Production has been hit by the


trend towards lightweighting and resource efficiency as it is measured in tonnes. The share of packaging grades accounted for 50.1 per cent (49.0 per cent in 2015) of the total paper and board production, with graphic grades accounting for 37.3 per cent (38.8 per cent in 2015). Sanitary and household manufacturers are estimated to have seen an increase in output of about 1.8 per cent compared to 2015 and accounted for 8.1 per cent of total production. Output of all other grades of paper and board – mainly for industrial and special purposes – increased by 2.8 per cent (4.5 per cent of total production). Based on the cumulative data


to the end of the third quarter of 2016 it is expected that total paper and board deliveries for the year were down by 0.7 per cent compared to 2015, whilst internal deliveries were stable. Deliveries of graphic grades had decreased by 5.6 per cent whilst deliveries of packaging grades


rose by 2.9 per cent. Exports from Europe had fallen


by 2.9 per cent by the end of September 2016 with the main markets for exports being other European countries, which accounted for about 37 per cent of all exports (36 per cent in the same period of 2015), with deliveries to Asian countries accounting for about 25 per cent (26 per cent in 2015), 12 per cent going to North America (11 per cent in 2015), 8 per cent to Latin America and 18 per cent to all other countries. CEPI says it would appear


that the overall consumption of paper and board in CEPI countries in 2016 increased by 1 per cent compared to 2015, based on the latest data available. Production of pulp (integrated and market) is estimated to have increased by 0.7 per cent compared to the previous year, with total output of approximately 36.5 million tonnes, and the output of market pulp increased by around 2.5 per cent. Estimates are that utilisation of paper for recycling by CEPI members, at 47.6 million tonnes, decreased by around 0.3 per cent compared to 2015.


€44 billion needed to lead the low-carbon bioeconomy


The European paper industry has launched the reviewed version of its 2050 Roadmap detailing the investment needed to cut its carbon emissions by 80 per cent while creating 50 per cent more


added-value. The Roadmap projects the need


for €44 billion more investment – a 40 per cent increase on current levels – to transform industry in Europe and lead the low-carbon


bio-economy by 2050. “Since our first Roadmap in 2011 the paper industry has invested €15 billion in Europe. More must be done to accelerate industry transformation in


Europe over the next decade,” says Sylvain Lhôte, CEPI’s Director General. “It is now essential to lift-off the low- carbon bio-economy and pace of transformation.”


March/April 2017


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