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Global Imports of Printing Paper Fall Dramatically, but China Increases Its Purchases

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Archives, Global Trade Daily, Imports/Exports, News

Global Imports of Printing Paper Fall Dramatically, but China Increases Its Purchases

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IndexBox has just published a new report: ‘World – Printing and Writing Paper – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Digitalization has put pressure on the world’s trade of printing and writing paper. Over the past decade, global imports of printing and writing paper dropped from 47M tonnes in 2010 to 31M tonnes in 2020. In value terms, imports declined to $27.6B. The U.S., Germany and France remain the largest importers of printing and writing paper worldwide. China features as the only county that boosted its paper imports last year. In 2020, the average printing and writing paper import price fell by -3.2% y-o-y to $899 per tonne 2020. Germany, Indonesia, Finland and Sweden constitute the largest exporters of printing and writing paper.  

Global Imports of Printing and Writing Paper

Under the pressure of digitalization, global imports of printing and writing paper dropped from 47M tonnes in 2010 to 31M tonnes in 2020, a decrease of -34%. In value terms, imports reduced from $34.4B in 2019 to $27.6B (IndexBox estimates) in 2020.

Germany (3.3M tonnes) and the U.S. (3.2M tonnes) represented the major importers of printing and writing paper in 2020, accounting for approx. 11% and 10% of total imports, respectively. France (1.9M tonnes) took a 6.3% share (based on tonnes) of total imports, which put it in second place, followed by the UK (5.3%) and China (4.9%). Italy (1,145K tonnes), Poland (1,009K tonnes), Turkey (813K tonnes), Japan (690K tonnes), Singapore (649K tonnes), India (628K tonnes), Spain (598K tonnes) and the Netherlands (545K tonnes) followed a long way behind the leaders.

In value terms, the largest printing and writing paper importing markets worldwide were the U.S. ($2.9B), Germany ($2.8B) and France ($1.7B), together comprising 27% of global imports. The UK, China, Italy, Poland, Spain, Turkey, Japan, the Netherlands, Singapore and India lagged somewhat behind, comprising a further 29%.

Among the largest importers, China was the only country that increased purchases of printing and writing paper from abroad. The value of Chinese purchases rose from $0.9B in 2019 to $1.2B in 2020.

The average printing and writing paper import price stood at $899 per tonne in 2020, reducing by -3.2% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was the Netherlands ($1,186 per tonne), while India ($749 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Spain, while the other global leaders experienced more modest paces of growth.

World’s Largest Suppliers of Printing and Writing Paper

Germany (4.2M tonnes), Indonesia (3.2M tonnes), Finland (2.7M tonnes), Sweden (2.2M tonnes), China (1.8M tonnes), Canada (1.8M tonnes), Austria (1.6M tonnes), Portugal (1.3M tonnes), Brazil (1.2M tonnes), South Korea (1.1M tonnes), the U.S. (1.1M tonnes) and Italy (1M tonnes) represented roughly 75% of total exports of printing and writing paper in 2020. The Netherlands (794K tonnes) followed a long way behind the leaders.

In value terms, the largest printing and writing paper supplying countries worldwide were Germany ($3.8B), Finland ($2.3B) and Indonesia ($2.1B), together comprising 30% of global exports. China, Sweden, Canada, Austria, the U.S., Portugal, Italy, South Korea, Brazil and the Netherlands lagged somewhat behind, accounting for a further 45%.

Source: IndexBox Platform

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Rising Paper Packaging Demand to Mitigate Adverse Pandemic Effects on the Global Pulp Market

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Because of the pandemic-related shifts in downstream industries, pulp manufacturers are forced to correct their market strategies towards the rapid increase of packaging paper use. In the medium term, value chain sustainability emerges as the most important factor due to the tightening of environmental regulation.

According to a new report by IndexBox, the global wood pulp market is estimated at $132.7B. Chemical wood pulp (148M tonnes) constituted the product with the largest consumption volume, accounting for 77% of the total volume. Moreover, chemical wood pulp exceeded the figures recorded for the second-largest type, mechanical wood pulp (24M tonnes), sixfold. Semi-chemical wood pulp (11M tonnes) ranked third in total consumption with a 5.9% share.

The COVID crisis became an ordeal for the paper industry. The decline in the demand for printing and writing paper due to the digital transformation has intensified further because exhibitions and conferences and advertising and education migrated online during the pandemic.

Considering a significant part of the population started to work from home, and cloud technologies became a must-have technology, it leaves no chances for a considerable printing paper market growth even after overcoming the COVID crisis.

In contrast to the decline in the demand for paper supplies for offices, schools, and restaurants in 2020, the demand for paper for households’ needs (toilet paper, napkins) soared in 2020. During the pandemic, the surge in e-commerce has pushed factories producing corrugated boards and paper packaging to operate at full capacity. The lack of supply of cardboard packaging has led to higher prices for cardboard in 2020. Pulp producers are set to adjust their market strategies to the downstream paper and paperboard mill industries’ shifts.

While Paper Packaging Segment Drives Market Growth, Supply Chain Sustainability Becomes Vital

The countries with the highest volumes of wood pulp consumption in 2019 were the U.S. (51M tonnes), China (39M tonnes), and Japan (10M tonnes), together accounting for 52% of global consumption. These countries were followed by Canada, Sweden, Russia, Finland, Brazil, Germany, India, Indonesia, Italy, and France, which accounted for a further 31%.

From 2012 to 2019, the most notable rate of growth in terms of wood pulp consumption, amongst the leading consuming countries, was attained by India (with a CAGR of +6.2%), China (+6.1%), and Russia (+4.1%), while wood pulp consumption for the other global leaders experienced more modest or even slightly negative paces of growth.

In the medium term, the demand for paper packaging is expected to grow steadily worldwide, given that paper is an environmentally friendly, biodegradable, and recyclable material. This is facilitated by adopting new legislation in the EU and other countries, the US re-entering the Paris Agreement, and the intensification of international efforts to preserve the climate.

According to the EU packaging-related regulation, by 2030, at least 85% by weight of all paper and cardboard packaging waste must be recycled. In 2019, in the EU, the share of secondary raw materials in paper production was 49%, while the share of wood pulp was 41%. This makes the paper value chain‘s sustainability the key factor for the industry in the future, meaning the increased use of recycled raw materials and decreasing energy consumption.

China to Remain the Major Importer of Wood Pulp

Global wood pulp imports stood at 64M tonnes in 2019. In value terms, wood pulp imports reached $45.4B (IndexBox estimates) in 2019. In March 2020, the lockdown led to a sharp drop in global imports of wood pulp by 10% in physical terms compared to April 2020, which was 30% lower than in March 2019. By May 2020, it dropped deeper, amounting to only 60% against May 2019. Afterward, there was a recovery attempt, but during 2020 global pulp imports failed to regain 2019 levels, largely attributed to reduced global printing paper use.

In 2019, China (24M tonnes) represented the major importer of wood pulp, constituting 37% of total imports. From 2012 to 2019, the average annual growth rates concerning wood pulp imports into China stood at +5.9%. At the same time, India (+9.4%), Turkey (+6.5%), Poland (+6.3%), Spain (+3.4%), Indonesia (+1.7%), the Netherlands (+1.6%), the U.S. (+1.5%) and Italy (+1.3%) displayed positive paces of growth.

India emerged as the fastest-growing importer imported globally, with a CAGR of +9.4% from 2012-2019. Germany, Japan, and South Korea experienced a relatively flat trend pattern. By contrast, France (-2.0%) illustrated a downward trend over the same period. In 2020, China should maintain its leading position in terms of imports because rapid urbanization and income growth promote packaging and household paper use in the country.

In value terms, China ($18.8B) constitutes the largest market for imported wood pulp worldwide, comprising 41% of global imports. The second position in the ranking was occupied by the U.S. ($3.3B), with a 7.2% share of global imports. It was followed by Germany, with a 6.5% share.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, Imports/Exports

Paper Sack and Bag Market in Asia-Pacific Undergoes Robust Expansion

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IndexBox has just published a new report: ‘Asia-Pacific – paper sacks and bags – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the paper sack and bag market in Asia-Pacific amounted to $22.6B in 2018. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.8% over the period from 2007 to 2018; however, the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded in certain years. The level of paper sack and bag consumption peaked in 2018 and is likely to continue its growth in the immediate term.

Consumption by Country

The country with the largest volume of paper sack and bag consumption was China (4.5M tonnes), accounting for 50% of total volume. Moreover, paper sack and bag consumption in China exceeded the figures recorded by the second-largest consumer, India (1.7M tonnes), threefold. Indonesia (768K tonnes) ranked third in terms of total consumption with a 8.5% share.

In China, paper sack and bag consumption increased at an average annual rate of +2.7% over the period from 2007-2018. In the other countries, the average annual rates were as follows: India (+5.1% per year) and Indonesia (+3.3% per year).

In value terms, China ($11.2B) led the market, alone. The second position in the ranking was occupied by India ($4.2B). It was followed by Indonesia.

The countries with the highest levels of paper sack and bag per capita consumption in 2018 were South Korea (4,002 kg per 1000 persons), China (3,086 kg per 1000 persons) and Indonesia (2,873 kg per 1000 persons).

Market Forecast to 2030

Driven by increasing demand for paper sack and bag in Asia-Pacific, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.4% for the period from 2018 to 2030, which is projected to bring the market volume to 11M tonnes by the end of 2030.

Production in Asia-Pacific

In 2018, the amount of paper sacks and bags produced in Asia-Pacific stood at 9.3M tonnes, growing by 3.9% against the previous year. The total output volume increased at an average annual rate of +2.9% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed over the period under review. The pace of growth appeared the most rapid in 2016 when production volume increased by 4.3% y-o-y.

Production by Country

China (4.9M tonnes) constituted the country with the largest volume of paper sack and bag production, comprising approx. 52% of total volume. Moreover, paper sack and bag production in China exceeded the figures recorded by the second-largest producer, India (1.7M tonnes), threefold. The third position in this ranking was occupied by Indonesia (769K tonnes), with a 8.3% share.

From 2007 to 2018, the average annual growth rate of volume in China amounted to +2.7%. The remaining producing countries recorded the following average annual rates of production growth: India (+5.0% per year) and Indonesia (+3.0% per year).

Exports in Asia-Pacific

In 2018, the amount of paper sacks and bags exported in Asia-Pacific totaled 543K tonnes, picking up by 3% against the previous year. The total export volume increased at an average annual rate of +2.4% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. In value terms, paper sack and bag exports amounted to $1.7B (IndexBox estimates) in 2018.

Exports by Country

China prevails in paper sack and bag exports structure, accounting for 390K tonnes, which was near 72% of total exports in 2018. Viet Nam (28K tonnes) occupied the second position in the ranking, followed by Malaysia (26K tonnes). All these countries together occupied approx. 9.9% share of total exports. Indonesia (23K tonnes), China, Hong Kong SAR (13K tonnes), Taiwan, Chinese (11K tonnes), South Korea (9.1K tonnes) and Sri Lanka (9K tonnes) occupied a little share of total exports.

Exports from China increased at an average annual rate of +2.6% from 2007 to 2018. At the same time, Viet Nam (+42.2%), Sri Lanka (+16.7%), Taiwan, Chinese (+13.8%), South Korea (+3.4%) and Malaysia (+1.4%) displayed positive paces of growth. Moreover, Viet Nam emerged as the fastest-growing exporter exported in Asia-Pacific, with a CAGR of +42.2% from 2007-2018. Indonesia experienced a relatively flat trend pattern. By contrast, China, Hong Kong SAR (-11.2%) illustrated a downward trend over the same period. China (+18 p.p.) and Viet Nam (+5 p.p.) significantly strengthened its position in terms of the total exports, while China, Hong Kong SAR saw its share reduced by -6.3% from 2007 to 2018, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($1.3B) remains the largest paper sack and bag supplier in Asia-Pacific, comprising 76% of total paper sack and bag exports. The second position in the ranking was occupied by Viet Nam ($90M), with a 5.1% share of total exports. It was followed by China, Hong Kong SAR, with a 3.8% share.

Export Prices by Country

In 2018, the paper sack and bag export price in Asia-Pacific amounted to $3,223 per tonne, rising by 2.3% against the previous year. Over the last eleven-year period, it increased at an average annual rate of +1.0%. The most prominent rate of growth was recorded in 2008 an increase of 14% year-to-year. The level of export price peaked at $3,468 per tonne in 2015; however, from 2016 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was China, Hong Kong SAR ($5,150 per tonne), while Sri Lanka ($1,514 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Hong Kong, while the other leaders experienced more modest paces of growth.

Imports in Asia-Pacific

In 2018, the amount of paper sacks and bags imported in Asia-Pacific stood at 260K tonnes, jumping by 5.4% against the previous year. The total import volume increased at an average annual rate of +3.4% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, paper sack and bag imports amounted to $721M (IndexBox estimates) in 2018.

Imports by Country

In 2018, Japan (44K tonnes), Australia (36K tonnes), China, Hong Kong SAR (26K tonnes), India (23K tonnes), Indonesia (22K tonnes), Singapore (17K tonnes), Malaysia (16K tonnes), South Korea (12K tonnes), New Zealand (11K tonnes), the Philippines (11K tonnes), Thailand (10K tonnes) and Taiwan, Chinese (9K tonnes) was the largest importer of paper sacks and bags imported in Asia-Pacific, mixing up 92% of total import.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Indonesia, while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest paper sack and bag importing markets in Asia-Pacific were Japan ($166M), Australia ($109M) and China, Hong Kong SAR ($75M), together accounting for 49% of total imports. These countries were followed by Singapore, Indonesia, South Korea, New Zealand, Malaysia, India, the Philippines, Taiwan, Chinese and Thailand, which together accounted for a further 43%.

Import Prices by Country

In 2018, the paper sack and bag import price in Asia-Pacific amounted to $2,778 per tonne, surging by 4.6% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +2.5%. The growth pace was the most rapid in 2011 an increase of 10% against the previous year. The level of import price peaked at $2,868 per tonne in 2014; however, from 2015 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Japan ($3,754 per tonne), while India ($1,382 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Hong Kong while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, News

U.S. Folding Paperboard Box Market – Imports from China Recorded a Dramatic Increase of 17.9% in 2018

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IndexBox has just published a new report: ‘U.S. Folding Paperboard Box Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the folding paperboard box market in the U.S. amounted to $14.4B in 2018, remaining relatively unchanged against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, folding paperboard box consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 with an increase of 2.9% y-o-y. Folding paperboard box consumption peaked in 2018 and is likely to continue its growth in the immediate term.

Folding Paperboard Box Production in the U.S.

In value terms, folding paperboard box production amounted to $14B in 2018. Overall, folding paperboard box production, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 when production volume increased by 3% against the previous year. Folding paperboard box production peaked in 2018 and is likely to continue its growth in the immediate term.

Exports from the U.S.

In 2018, the exports of folding paperboard box from the U.S. stood at 16K tonnes, declining by -16.7% against the previous year. Overall, folding paperboard box exports continue to indicate a noticeable deduction. The growth pace was the most rapid in 2016 when exports increased by 13% year-to-year. In that year, folding paperboard box exports attained their peak of 20K tonnes. From 2017 to 2018, the growth of folding paperboard box exports remained at a lower figure.

In value terms, folding paperboard box exports totaled $42M (IndexBox estimates) in 2018. Over the period under review, folding paperboard box exports continue to indicate a moderate contraction. The growth pace was the most rapid in 2016 when exports increased by 8.2% against the previous year. In that year, folding paperboard box exports attained their peak of $51M. From 2017 to 2018, the growth of folding paperboard box exports failed to regain its momentum.

Exports by Country

The Dominican Republic (1.9K tonnes), Belgium (1.1K tonnes) and Italy (932 tonnes) were the main destinations of folding paperboard box exports from the U.S., together accounting for 25% of total exports.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by Belgium, while the other leaders experienced more modest paces of growth.

In value terms, the Dominican Republic ($5.7M), Costa Rica ($3M) and Italy ($2.6M) were the largest markets for folding paperboard box exported from the U.S. worldwide, with a combined 27% share of total exports. These countries were followed by France, Panama, Germany, Belgium, the UK, Colombia, Nicaragua, the Netherlands and Ecuador, which together accounted for a further 34%.

Nicaragua experienced the highest growth rate of exports, in terms of the main countries of destination over the last five-year period, while the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average folding paperboard box export price amounted to $2,724 per tonne, rising by 4.2% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +1.4%. The pace of growth appeared the most rapid in 2017 an increase of 5.6% y-o-y. The export price peaked in 2018 and is expected to retain its growth in the immediate term.

There were significant differences in the average prices for the major foreign markets. In 2018, the country with the highest price was Germany ($3,297 per tonne), while the average price for exports to Ecuador ($1,188 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to Panama, while the prices for the other major destinations experienced more modest paces of growth.

Imports into the U.S.

In 2018, the imports of folding paperboard box into the U.S. amounted to 161K tonnes, surging by 17% against the previous year. The total import volume increased at an average annual rate of +5.4% from 2013 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 17% against the previous year. In that year, folding paperboard box imports reached their peak and are likely to continue its growth in the immediate term.

In value terms, folding paperboard box imports stood at $536M (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +6.0% from 2013 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. The pace of growth appeared the most rapid in 2018 with an increase of 14% y-o-y. In that year, folding paperboard box imports reached their peak and are likely to continue its growth in the immediate term.

Imports by Country

In 2018, China (103K tonnes) constituted the largest supplier of folding paperboard box to the U.S., accounting for a 64% share of total imports. Moreover, folding paperboard box imports from China exceeded the figures recorded by the second-largest supplier, Indonesia (15K tonnes), sevenfold. The third position in this ranking was occupied by Germany (10K tonnes), with a 6.4% share.

From 2013 to 2018, the average annual growth rate of volume from China amounted to +5.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Indonesia (+11.4% per year) and Germany (+20.5% per year).

In value terms, China ($387M) constituted the largest supplier of folding paperboard box to the U.S., comprising 72% of total folding paperboard box imports. The second position in the ranking was occupied by Germany ($26M), with a 4.8% share of total imports. It was followed by Indonesia, with a 3.9% share.

From 2013 to 2018, the average annual rate of growth in terms of value from China amounted to +5.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Germany (+17.1% per year) and Indonesia (+7.2% per year).

Import Prices by Country

In 2018, the average folding paperboard box import price amounted to $3,337 per tonne, dropping by -2.2% against the previous year. Overall, the folding paperboard box import price, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 when the average import price increased by 3.2% y-o-y. The import price peaked at $3,413 per tonne in 2017, and then declined slightly in the following year.

Prices varied noticeably by the country of origin; the country with the highest price was China ($3,755 per tonne), while the price for Turkey ($1,213 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Taiwan, Chinese, while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox AI Platform