French and European paper industry up on 2019

From January to September 2021, French paper production increased by 6.7% compared to the same period in 2020, reaching 5.4 million tons, announced Copacel. The professional association of French companies producing pulp, paper and cardboard, which brings together 74 companies and represents 5 billion euros in sales, estimates the increase in production of graphic papers to +6.8%, paper and cardboard for packaging to +9.8%.

As for the hygiene papers, they are in decline (-2,9 %) because of the constitution of stocks of precautions by the households during the confinements.

The majority of the French paper sites should thus exceed in 2021 their level of production of 2019, according to the professional grouping and arrive at the maximum of their capacities.

Paper production also up in Europe

This increase in demand is found on a European scale, erasing the production trough of 2020, notes the trade association. From January to August 2021, the European papetieeurosre production is up 6.2% over the same period 2020. It thus reaches the level of production of 2019, or 57 million tons.

However, some types of paper "under tension

However, despite this increase in production, some types of paper, notably newsprint, certain types of printing-writing paper and flat board "may be under stress, which materializes in longer delivery times for companies located downstream of the paper industry".

Copacel explains these delivery difficulties, firstly, by strong demand with identical or even lower production capacities for several product families. "The closures or conversions of machines that have been decided at the European level for the last three years in the graphic paper segment (to face a structural reduction in the consumption of these products for the last 15 years), lead to a situation of tension between supply and demand

Copacel suggests, secondly, the increase in demand due to the need for companies to replenish their stocks started in 2020.

Finally, the union mentions the logistical difficulties - road or sea freight - which can contribute to this increase in delivery times.

The cost of paper production is rising "sharply"

Certainly wanting to justify the increases in its prices denounced by various actors in recent weeks, the professional grouping adds: "One of the characteristics of the period we are going through is that the rise in the costs of factors of production is both sudden and applicable to virtually all expenditure items."

From October 2020 to October 2021, the price of NBSK reference pulp rose by more than 60%; recycling materials such as cardboard boxes and newspapers and magazines increased in price by more than 150% and 200% respectively; electricity prices in the wholesale market rose by 250%; gas prices increased fivefold; and prices for chemicals, starch and consumables rose by double digits.

"Unlike some industries, where unprecedented increases in energy prices have led to production slowdowns, the paper industry is maintaining the highest possible level of activity in order to best meet the demands of its customers

Doctor Blades, Coater Blades, Creping Blades

Holocene Smart Technologies Co., Ltd