According to CW Research, paper and pulp market volumes in October 2017 have displayed a positive evolution across selected markets, with China playing a prominent role in international trade.

As noted by Filipe Gouveia, analyst with CW Research: “China is expected to strengthen its position as a polarizing force for the paper and pulp industry. This growing economy is currently keeping paper and pulp exporters afloat, as their dependency on Chinese imports grows.”

Japanese and Brazilian markets driven by rising exports

In October, pulp production in Germany stood at 197,000 tons, representing a 7.1 percent increase from the same period the previous year. Domestic deliveries of paper and board amounted to 1.1 million tons over the same month, posting a 3.6 percent year-on-year increase when compared to 1.0 million tons from the corresponding period in 2016.

In Japan, pulp production strengthened both month on month and year on year in October. Paper production also recorded an improving MoM trend, despite a decreasing YoY evolution. Notwithstanding a contracting domestic pulp consumption, producers seek to increase exports to China. Benefiting from a rise in external demand, Japanese pulp makers are resorting to raising prices in order to increase their margins.

Meanwhile, in China, paper and paperboard production posted a modest month-on-month decrease in October, reaching 10.9 million tons. Compared to the same period last year, paper and paperboard output improved by a single digit. During the first ten months of the year, paper and paperboard production expanded compared to the same period last year, standing at 87.2 million tons.

In Brazil, during October, pulp production increased slightly from 1,582,000 tons in September, also strengthening year on year. Over the same period, domestic paper output mirrored the rising trend, expanding both MoM and YoY. Although the Brazilian economy is still performing poorly, the pulp and paper sector remains unshaken. As the Chinese market displays a growing demand for pulp, major exporting countries like Brazil are enabled to implement price increases despite a lower domestic demand.

 

Find out more about CW Research’s Paper and Pulp Country Market Data here

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