Australia’s total import of printing and communication paper decreased by 14.6% for the year to May 2023, while New Zealand’s was down by 13.2%, according to IndustryEdge’s Pulp and Paper Edge online data.
Last week, Wood Central reported that two of the world’s largest forest companies – Canfor and West Fraser Timber, attributed poor financial results to a weak pulp and paper market.
West Fraser Timber stated that “declining pulp prices led to a significant inventory write-down,” whilst Canfor reported a “significant deterioration in global pulp market fundamentals.”
At the same time, the Russian industry is facing an acute crisis in sales, with weakening Chinese demand, high export logistics, sanctions and competition from India, Argentina and Brazil leading to mill closures.
According to Tim Woods, Managing Director of Industry, “the team at IndustryEdge continue to report on the accelerating decline in demand for printing and communication papers.”
“At the same time, we applaud the regional integrated fibre packaging sector. In some grades: this region is a fortress.”
The trans-Tasman paper and cardboard trade
IndustryEdge reports that Australia and New Zealand are significant suppliers to each other’s pulp, paper and paper products industries.
“Australia significantly and consistently contributes to New Zealand’s imports of P&I paper grades,” IndustryEdge said.
“This is to be expected given the trans-Tasman integration of the corrugated packaging sector.”
Supporting the regional fortress, New Zealand significantly contributes to Australia’s imported pulp supplies.
“This is driven by the fibre cement pulp exports from OFS Tasman to the Australian building products manufacturing sector, including prominent firms like CSR and Weathertex.”
The share of the Australian corrugated packaging import market held by New Zealand, according to IndustryEdge, is significant.
Yesterday IndustryEdge published the July edition of Pulp and Paper Edge, which strongly focuses on trans-Tasman trade.
Users can subscribe to the current edition of Pulp and Paper Edge.
Australia
Regarding printing and communication papers, Australia’s imports dropped from 348.1 kilotons to 297.4 kilotons – or 50.7 kilotons.
According to IndustryEdge, Australia’s monthly imports were up 15.6% compared with April, to 21.0 kilotons; however, imports were 25.0% lower than in May 2022.
Total imports were down 27.2% over the quarter ending May, compared to the same period in 2022.
For more information, including a breakdown by product type, view the latest data via IndustryEdge’s Pulp and Paper Edge online data.
New Zealand
Unlike Australia, New Zealand does not have a local pulp and paper manufacturing industry, with imports making up the total supply.
According to IndustryEdge, data is erratic, with one-off spikes regularly followed by lower months.
In May 2023, imports were up 29.7% to 5.3 kilotons.
Imports were down 24.5% over the quarter ending April, compared to the same period in 2022, with total imports down 10.6% over the year to April 2023.
For more information, including a breakdown by product type, view the latest data via IndustryEdge’s Pulp and Paper Edge online data.
Have pulp prices levelled out?
According to Mr Woods, pulp prices may have now stabilised.
“However, they have crashed a long way in the first half of 2023 to reach the low point,” he said.
The impact of this drop, Mr Woods said, has yet to flow through to all markets or even wood fibre imports.
Detailed market analysis is provided for subscribers throughout the monthly Pulp & Paper Edge Data and Information Service and via the downloadable data files and analysis tools.
