Imports of sawn softwood continued within the expected range in April 2020, with shipments totalling 37,203 m3 for the month. That was 16% higher than the prior month, but 500 m3 below the average of the last year. Source: Tim Woods IndustryEdge
However, the average export price plunged 15.2% compared with the previous month, falling to just AUDFob439/m3, the lowest average price recorded in more than three years.
The average sawn softwood import price for the last year was AUDFob535/m3, some 15% higher than the average price in April 2020.
Australia’s balance of trade in paper, paperboard, paper products and fibre supplies shot to a new annual record deficit of AUD2.381 billion over the year-ended April. Based on analysis of preliminary data from the ABS, the deficit is 13.3% higher than a year ago, with the annual deficit recording an eighth successive monthly record.
The annual value of imports continues to rise at a faster rate than the value of exports.
Underscoring the slow burn of the pandemic, the annual value of imports lifted 0.9% in April, compared with March, while for paper, paperboard and paper products, the rise was a more meagre 0.2%.
The monthly data – only available at an aggregate level for the preliminary releases – shows the value of pulp and recovered fibre imports shot up 32% in April, while for the paper grades and products, the lift was 12%.
Pulp imports, for the production of tissue in the main, increased substantially by volume in April. Pulp prices remain soft and Australia’s imports of recovered paper are negligible, so the only alternative is increased pulp imports.
But all that aside, the most significant factor in this virile deficit situation is that paper grade and product imports have increased in value on an annualised basis, almost every month over the last two years. Value at AUD3.380 billion over the year-ended April 2020, imports have never been more valuable.
Egg cartons, fruit trays, medical pulp, mini display trays and an ever-growing range of moulded-fibre products continue to increase their presence in the Australian economy. The value of Australia’s Moulded Fibre product imports increased across the year ended March 2020. Up 11.5% across the year, total imports for the year-ended March 2020 were valued at AUDM38.3, compared with the AUDM33.9 imported in the prior year.
Imports were sourced from a variety of supplier countries however, the majority originated in the Asian region.
Chinese supplies accounted for 52.7% of all imported value (AUDM20.4), while Malaysian imports made up 24.3% (AUDM9.4). Examined over a five-year period, the value of imported moulded fibre products experienced an annual average growth rate of 16.4%.
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