According to recent Copacel statistics, paper and board production in France fell sharply by 20.3% in January 2023, with 515,000 tonnes produced compared to 646,200 in January 2022.  This significant decrease affected almost all paper and board grades with the notable exception of the sanitary and domestic sector, which slightly increased by 1%. At -37%, the greatest decline was in the production of graphic grades. The packaging segment fell by more than 19%, carton board and flexible packaging were at -27%, and corrugated paper at -17%.  These figures reflect the many production stoppages of paper and board mills caught between their high production costs due to energy and an intense destocking period.

You can find all the French paper and board production statistics from January 2023 on our website in the Index section.

According to recent preliminary statistics published by CEPI, the paper and board production of CEPI member countries decreased by 5.9% in 2022 compared to the previous year, reflecting the heavy impact of high energy prices and the sharp slowdown in the European economy in the second half of the year on the industry. Total production in 2022 reached 84.8 million tones with a decrease reported in almost all paper and board grades except for the sanitary and household areas. At the same time, paper consumption remained stable despite the economic slowdown. With 7 million tonnes of paper and board produced in 2022 compared to 7.35 in 2021, France’s decline was only 3.7%.                

You can find all of European paper and board production statistics in 2022 on our website, in the Index section.

In the midst of the energy crisis, the paper industry is worried but resisting. Remember that early September was marked by price increases for graphic grades, carton board and tissue. Recovered paper was affected by a serious drop in packaging demand, which then led to a price drop. October and November saw certain trends intensify. In particular, the decline in the price of recovered paper which has spread to all grades. The bullish pulp cycle also appears to be coming to an end as prices that have reached historically high levels. Prices have begun to ease on long fibres, with demand for short fibres remaining stronger and reduced supply. Despite the desire for increases on the part of some producers, the prices of corrugated paper, which were renewed in Europe in September, were stable except for the kraftliner whose price fell in France and Germany. While the carton board segment saw further increases in some grades in October, a decline in recycled grades began in November due to lower gas prices. The market for graphic grades remained without showing a real direction which the case for the tissue sector as well. Overall, the market has adapted well/ best to this energy shock, but the situation is not the same according to the players, whose needs and energy contracts differ. For several months now, all affected stakeholders have had to pass on these very variable additional costs. With the recent decline in energy prices, some are starting to back off and are adjusting their prices accordingly. One expectation remains, however, which is strong consumption in November.

If you are a subscriber, find all current price trends, prices and their history on www.papargus.com. To discover all the advantages of being a subscriber,  please contact Sylvie Hubert s.hubert@mpmedias.com.