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Demand for paper drops

Australia’s total demand for paper and paperboard fell 4.4% in the 2016-17 financial year. Source: Industry Edge

In volume terms the decline was more than 143,000 tonnes. The drop was driven lower by a plunge in consumption of newsprint and progressively lower demand for other printing and communication papers.

Stable growth in tissue demand was joined by the stability of the packaging and industrial paper market, especially corrugated boxes, to limit the fall in demand.

A detailed analysis is in the 2017 Pulp & Paper Strategic Review which covers demand for all sectors as well as production and trade in Australia and New Zealand.

In total exports rose 5.7% compared with the previous year, while imports fell a significant 8.8% over the same period. Production rose 2.0%, achieving a new record, despite the fall in local demand.

A full decade of volume and pricing experience is included in the Strategic Review, along with detailed economic comparisons and demand drivers.

New content includes three scenario-based consumption forecasts for each of the major grades – based on the last 10, five and two-year consumption experiences.

The forecasts assist businesses to understand the potential size of the opportunities available to them.

The Strategic Review is used extensively by local manufacturers, importers and exporters, suppliers, customers such as printers, packaging buyers and major retailers, as well as Government agencies.

Despite production in all other sectors declining (Newsprint, Printing & Communication and Tissue), total Australian production rose 2.0%, to a new record of 3,185,00 tonnes.

The aggregate rise of 65,000 tonnes was delivered entirely by 1.4% growth in Packaging & Industrial paper production.

Imports to Australia plunged in 2016-17, declining 8.8% in total, compared with the prior year. But not all grades experienced declines.

Newsprint imports fell 12.9% and Printing & Communication papers experienced a 3.9% decline compared with the prior year.

Offsetting these declines, to some extent, were rising tissue imports (up 3.9%) and a small (o.8%) increase in Packaging & Industrial paper imports. The big trade news for the year was the massive decline in imports of copy paper.