Communication and printing powers past packaging

Sheetfed and web papers for the non-packaging sector are set to displace the packaging grades as the largest industry sector.

Reflecting the decline in locally produced packaging as more manufacturing moves offshore, growth rates for printing and communication paper (P&C) tonnages are triple those of packaging paper and paperboard. According to the latest issue of the industry bible, Pulp & Paper Edge, printing consumed 1.5 million P&C for the first time over the course of 12 months. It is expected total P&C tonnage will power past the packaging grades figure sometime next year.
Packaging production is still growing but only at one percent, while the P&C sectors are moving along at a three percent growth rate. The traditionally higher value sector is also outstripping packaging in dollar value as the total cost of imported P&C paper grades hits AUD$1.1 billion.

The Industry Edge graph on right illlustrates the apparent consumption of printing and communication papers by grade :
1998 - 2008 (ktpa) 

The local printing industry for the first time is now consuming more than four million tonnes of paper per annum. During 2007-08 demand for imported P&C paper rose to 1,056,500.
According to Robert Eastment, Pulp & Paper Edge, the local industry represents a significant market for international mills but it is splintered into too many grades for there to be much leverage. The increase in total tonnage comes as the paper merchants are pushing through price rises and making them stick for the first time in years. Increases of up to ten percent have been posted by PaperlinX in the face of aggressive pricing from mills. All the other merchants are following suit.