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Pulp and paper

World production of paper and paperboard in 1992 increased by one percent to a new record of 246 million tonnes. However, the rate of growth though the same as the previous year, was still well below that of the late 1980s. Strong growth was particularly notable in the developing countries of the Far East including Indonesia, China, the Republic of Korea and Malaysia, as in previous years. In the United States production grew by 3.3 percent to a record 75 million tonnes but in Canada there was no growth. In Western Europe production rose by 2.5 percent where the most notable expansion was in coated graphic paper. In Eastern Europe, with the exception of Poland, production stagnated and in countries of the former USSR output was down by a further 24 percent.

Trade in paper and paperboard grew by 5 percent to 62 million tonnes. Import growth was especially strong in the Far East. Imports by China rose 57 percent to 2.9 million tonnes and those of Hong Kong by 19 percent to 2.3 million tonnes. There was a notable expansion of exports from the United States, mainly to the Far East and Central America; its total exports rose by 7 percent including 38 percent growth for newsprint. Canada's exports, the world's largest, grew by a further 4 percent. Trade in Western Europe continued to grow with notable increases in graphic and household paper. Exports from Finland and Sweden grew notably, helped by the devaluation of their currencies. Despite the continuation of growth in production and trade, the paper industry continued to be affected by excess capacity and relatively low prices and profitability. In 1993 paper production and trade continued to grow markedly in North America and in the developing countries of the Far East. In Western Europe demand growth slowed and production only increased slightly.

The global level of wood pulp production declined in 1992 even though paper output increased slightly. In Western Europe in 1992 was the third consecutive year of decline, reflecting displacement of wood pulp by waste paper and non-fibre raw materials such as fillers and coatings. There recovery of waste paper is often enforced by legislative measures to increase the recycling of waste material. As a result, consumption of recycled fibres in Western Europe exceeded consumption of chemical pulps for the first time in 1992. In the United States the pulp industry expanded with growth in domestic and export markets reflecting growth in paper production. Production also expanded considerably in Chile and in Brazil where most of the additional supplies were exported. However, in Canada there was no growth.

Trade in wood pulp increased by 3 percent and amounted to 28 million tonnes in 1992. Many markets tended to have excessive supplies of "market pulp" which depressed prices. Some pulp prices fell by close to 50 percent below their high point in 1989. With the reduced prices, notable purchases for stock were made by the main consuming countries in the Far East and Western Europe despite depressed demand for the end products. In 1993 consumption was at a relatively high level in the Far East and North America but international markets continued to be affected by excessive supplies of wood pulp and falling prices.

External trade of the European Community (EC)

The effect on trade data for forest products of excluding trade between members of the EC is illustrated for 1991 in the table below. This is to anticipate the likely impact on these data of the unification of the EC market from the beginning of 1993. Thereafter the only border for the collection of import and export statistics will be that crossed by goods entering or leaving the Community as a whole. The consequent exclusion from aggregate data of trade between member states, the intratrade, will be reflected in reduced figures for EC trade, treating it as a single country, with effects on global aggregates illustrated in the table.

Comparison of trade statistics for forest products for 1991, including and excluding trade between members of the European Community

Production

Exports

¹ Only data from 1990 onwards.

Value of exports

Prices

¹ Provisional figures.

Imports

¹ Only data from 1990 onwards.

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