Australia’s total pulp imports decreased in August 2022, down 7.7% in one month to total 33.2 kt. The August 2022 result was 2.5kt higher than the prior August. The monthly weighted average import price was AUDFob954/t, up 5.9% on the prior month. Source: IndustryEdge, charts Source: ABS, RBA and IndustryEdge
The chart below displays import volumes since January 2017.
Australian Pulp Imports by Grade: Jan ’17 – Aug ‘22 (‘000 tpm)
Imports are perpetually dominated by three grades: Unbleached Softwood Kraft (UBK), used as cement board stabiliser and in the production of Kraftliner for corrugated boxes, Bleached Softwood Kraft (BSK) and Bleached Hardwood Kraft (BHK), that despite their versatility are imported into Australia primarily for tissue production.
Australian Pulp Imports by Grade: YE Aug ’21 v YE Aug ’22 (kt & %)’
The annualised comparison of pulp import volumes shows ongoing growth for Bleached Hardwood Kraft (BHK), some fluctuations for Unbleached Softwood Kraft (UBK) pulp followed by recent growth, and stability for Bleached Softwood Kraft (BSK) pulp.
Annualised Australian Pulp Imports by Main Grade: Jan ’10 – Aug ‘22 (INDEX: Base = Jan
’10)
As the chart demonstrates, imports of BHK have continued to grow more or less consistently across the last decade, to the point where they are nearly two and half times higher than what they were a decade earlier. For the competitor, BSK, imports have declined by 19%, notably softening since the beginning of 2020 as imports of other pulps have increased. Over time, higher BHK imports appear to be supported by the solid price differential with BSK. This global experience can be explored in the monthly Pulp Market Briefing.
In recent months, as the BSK price increased, the price difference between BHK and BSK pulps grew sharply. However, with some erratic price movements, in August the gap closed somewhat. In August 2022, the BSK price was up to AUDFob1,017/t and the BHK price was also up to AUDFob912/t, creating a differential of AUD106/t in favour of BSK.
The recent price experience is shown below, noting that the chart is in US dollars, allowing for comparison with the main chart in the monthly Pulp Market Briefing.
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Australian Imports of Pulp by Main Grade: Jan ’10 – Aug ‘22 (USDFob/t)
