Paper: Finland production decreases

Commodities , Paper Jun 13, 2012 No Comments

Paper rollPulp and paper production will decline this year while paper and cardboard export prices will remain stable, the Finnish Forest Research Insitute (METLA) wrote in a recent study.

METLA stresses that paper demand will remain weak this year in the EU regions most important for the exports of Finnish forest products.

“So far we see no solution to the debt and crisis in the eurozone and the euro area should remain at a zero growth rate this year, at best,” says METLA.

Globally, the growth of the economy is also anticipated to be weak and only start to rise towards the end of this year, says the Finnish Institute.

Accordingly, METLA anticipates an 8% drop in production and exports of Finnish paper to 7.9 million tonnes and 7.3 Mt respectively for the year compared to last year.

Cardboard demand has remained relatively stable despite the ongoing recession, says METLA, which states that production and exports of paperboard only decreased by 1% to 2.7 Mt and 2.5 Mt respectively for the year.

METLA also anticipates relatively stable prices for the current year for both paper and  cardboard, after increases of 6% and 7% respectively in 2011.

If pulp production in Finland this year remained fairly stable in the first quarter, pulp exports rose 8%. METLA forecasts a 7% rise in Finnish paper pulp exports in 2012 to about 2.4 Mt, since global demand remains strong.

The price of pulp has been quite stable during the first part of 2011 but declined thereafter. This year, METLA expects Finnish kraft pulp export prices to drop by almost 5% compared to the average of 2011.

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Pascal Blanc

Pascal has implemented numerous software solutions in the areas of procurement, sourcing, spend management, supplier evaluation and performance. His clients include Fortune 500 companies in Europe, Asia and North America. He is a co-founder of Source & Procure.

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