New Zealand Packaging & Industrial Paper Export Proportions and Propensity: 2012 – 2022 (%)
For nearly two decades, New Zealand’s exports of Packaging & Industrial paper and paperboard have been declining. Source: Industry Edge
The 2021-22 financial year saw exports fall to 267 kt, down 7.7% on the prior year. The export result came as latest data confirmed production was about 6% lower than for the previous year.
The result means New Zealand’s export propensity for P&I grades fell to its lowest level reported by IndustryEdge. At 50.3%, New Zealand is now consuming almost half its annual production. The chart here shows the export propensity, along with the changing pattern of exports.
As the 2022 Pulp & Paper Strategic Reviews will demonstrate to subscribers, other than the changing export propensity, the other significant change of the last decade is the solid and continuous growth in exports of Coated Paperboard (much of which is folding box board grades).
Export growth of 3.8% per annum over the last decade for Coated Paperboard has been matched with annualised 5.3% declines in exports of Kraftliner.
In 2021-22, exports of Coated Paperboard lifted 5.1% as new owners of the Whakatane paper mill managed increased production and ramped up exports. The opposite was the case for Kraftliner, produced by Oji Fibre Solutions at Kinleith, with a steep 12.1% fall in exports for the year.
Australia remains the major destination for New Zealand’s exports, with mainland China now the second largest recipient. Thailand retreated from its position as second-largest recipient of Kiwi packaging exports because the Whakatane board mill ceased producing liquid packaging board grades in 2021 as part of its change of ownership. Malaysia is now comfortably the third largest recipient of New Zealand’s exports.
As the world accelerates its use of Packaging & Industrial papers, we can anticipate ever more pressure being placed on net exporting countries like New Zealand. The new owners of the Whakatane board mill timed their acquisition very well, it seems.
For more go to www.industryedge.com.au
