Australia’s production of paper and paperboard rose more than 72,000 tonnes in 2.0% in the year-ended June 2017, latest analysis in the annual Pulp & Paper Strategic Review identifies. Source: Industry Edge
Three of the four major production grades experienced growth across the year. In volume terms, the largest rise was achieved for Packaging & Industrial papers, where Containerboard Materials (Kraftliner, Testliner and Corrugating Medium) continued their strong production growth, fuelled by a potent mix of strong domestic demand, integrated export opportunities to North America and emerging supply shortages across the Asia Pacific region.
Section 6 of the Strategic Review demonstrates production of Kraftliner (by Australian Paper and Visy) for example, rose 3.7% compared with a year earlier and rose for the eighth successive year.
Visy and ASX listed Orora also lifted their production of Recycled Liner (Testliner) and Corrugating Medium.
Production of Printing & Communication papers (other than Newsprint), including copy paper and catalogue paper, rose more than 24,000 tonnes, with increased production recorded for grades produced by both Australian Paper and Norske Skog, as Section 4 of the Strategic Review shows.
Tissue production, led by Kimberly-Clark Australia, ABC Tissue and ASX listed Asaleo Care, and detailed in Section 5, rose by greater than 9,000 tonnes for the year, reaching levels not seen since 2009-10.
Over the same period – the 2016-17 financial year – New Zealand production rose more than 19,000 tonnes (2.7%), supported almost entirely by stronger production of Packaging & Industrial grades.
The details and revised market shares and structures should be of interest in both the Australian and New Zealand industries. Without significant assistance from currency movements, in general, the region’s local manufacturers increased their market share.
