Paper and cardboard (Russian market)

2023

Growth in pulp exports by 0.7% to 2.14 million tonnes. 90% of supplies are in China

In 2023, the export of wood kraft pulp from Russia amounted to 2.14 million tons. For comparison, a year earlier this figure was 2.13 million tons. Thus, an increase of 0.7% was recorded, as stated in the BusinesStat review, published in mid-June 2024.

Wood sulphate cellulose is used in the production of absorbent materials (such as fluffy cellulose and diapers for children), as well as paper and cardboard with high requirements for tear, tear and push strength. The rating of leading domestic suppliers includes Ilim Group JSC, Syktyvkar LPK JSC, Svetogorsk Pulp and Paper Division JSC, Arkhangelsk Pulp and Paper Division JSC and Segezhsky Pulp and Paper Division JSC.

It is noted that the Russian pulp market is largely export-oriented: the share of supplies abroad in the total production volume during 2019-2023 ranges from 34.1% to 38.3%. The key buyer of such products is China, which in 2023 accounted for almost 90% of the total export volume.

In 2019, it is estimated that the export of wood kraft pulp from Russia amounted to about 2.04 million tons. A year later, an increase of 12.9% was recorded - up to 2.3 million tons. However, in 2021, a 12.3% decline followed with a final result of 2.02 million tons. In 2022, exports returned to growth, showing an annual increase of 5.3%.

The BusinesStat study says that the development of export relations with China in 2019-2023 led to an increase in pulp supplies to this country by 485.2 thousand tons (plus 33.9% over the specified period). This had a positive impact on the overall export dynamics of these products from Russia. However, in 2023, a new package of EU sanctions had a negative impact on the volume of supplies abroad, which includes a ban on shipments of Russian pulp and certain types of paper and cardboard to European countries.^[1]

Exports of Russian pulp and paper products to China soared by 25.4% to 3.6 million tons over the year

The export of Russian pulp and paper products to China in 2023 soared by 25.4% compared to 2022 and reached 3.6 million tons. This was reported in Roslesinforg on February 7, 2024. Read more here.

2022: Paper bag production growth by 10.4% to 4.6 billion units

The volume of production of paper bags, bags and bags in Russia in 2022 reached 4.6 billion units, an increase of 10.4% compared to a year ago. Such data in early December 2023 led to the research company AnalyticResearchGroup.

According to experts, in the period 2021-2022. the largest market growth was recorded in 2021, when the volume of production increased by 83.4% compared to the previous year. The decline during this period was recorded only once, in 2015 (-5%).

According to experts, despite the challenges associated with the general uncertainty of the economic situation in Russia, there are growth prospects for the market. New environmental initiatives could lead to the phasing out of plastic packaging. It is expected that the demand for eco-packaging will grow, since this market segment in Russia has not yet received significant development. In general, while maintaining the dynamics of recent years, the production of paper bags, bags and bags in Russia may show an annual increase until 2027 at 5.32%, analysts predict.

According to Roslesinforg, the growth in the production of paper bags in 2022 amounted to 10.37% and was accompanied by an increase in sales revenue, as evidenced by an increase in prices - since the beginning of the year, the average price of one paper bag increased by 18.9% and amounted to 18.1 rubles. The department also noted that the market for paper bags and bags is one of the most important components of the container and packaging market.

It follows from the materials of Roslesinforg that there was a decrease in the main pulp and paper production in 2022, although an increase of about 7-10% was recorded in some segments, but the production of hygiene products (toilet paper and napkins) increased the most - by 30%.^[2]

2018: Print paper consumption cuts

Printing paper consumption in CIS, Europe and USA

2013

According to the calculations of DISCOVERY Research Group, it was revealed that in 2013 the volume of the paper market in Russia exceeded 3.6 million tons, and the volume of the cardboard market amounted to over 3.1 million tons. Compared to the previous year, it is possible to note the growth of the paper and cardboard market by 14%. In terms of value, the paper market in 2013 amounted to more than $2.35 billion, and the cardboard market - $2.02 billion.

In 2013, Russia maintained high production rates in the paper and cardboard markets. Over 4.8 million tons of paper and 3.3 million tons of cardboard were produced during the year. In value terms, the market for produced paper amounted to $2.77 million, and the market for cardboard - $1.89 million.

In 2013, OJSC Arkhangelsk Pulp and Paper Mill retained its leading position in the production of paper and cardboard in Russia. This plant operates in the following key areas: the production of cardboard, paper, pulp, as well as fiberboard. Over the past few years, the share of cardboard production by Arkhangelsk Pulp and Paper Mill in the scale of Russian production has been approximately 20-25%.

In 2013, 740.9 thousand tons of paper of all types were imported into Russia, which in value terms exceeded 778.9 million US dollars. In the same year, 545.2 tons of cardboard of all categories were imported, which in value terms amounted to 547.9 million dollars.

Paper exports in 2013 in physical terms amounted to about 1.9 million tons, and cardboard exports - 660.3 thousand tons. In value terms, exports amounted to: for the paper market - $1.2 million, for the cardboard market - $412 thousand. It should be noted that the export indicators exceed the import indicators in this year in both markets.

In general, production, import and export indicators for 2013 increased compared to the previous year.

According to estimates by analysts at DISCOVERY Research Group, further development of both the paper and cardboard markets is expected. One of the leading drivers of market development will be the improvement of technologies in domestic production: market players continue to carry out a number of upgrades in production technologies, as a result of which the production of high-quality Russian paper and cardboard is developing, successfully competing with foreign manufacturers not only in price, but also as products.

2012

According to DISCOVERY Research Group, the paper and cardboard market in Russia in 2012 amounted to 5.9 million tons in physical terms. At the same time, 3.1 million tons accounted for paper, 2.8 million tons - for cardboard. Compared to 2011, the volume of both the paper and cardboard markets increased - by 3 and 5%, respectively. The main reason for the increase in the volume of the paper market in 2012 was a decrease in its exports from Russia, while the volume of its production and imports remained practically unchanged compared to 2011.

The volume of cardboard production in Russia in 2012, according to DISCOVERY Research Group estimates based on FSGS data, amounted to just under 3 million tons. At the same time, the leading entity for the production of cardboard was the Arkhangelsk region, which accounted for about a third of the total volume of cardboard produced in Russia in 2012. The largest manufacturers of cardboard in this region are OJSC Arkhangelsk Pulp and Paper Mill, OJSC Solombalsky Pulp and Paper Mill and Ilim Group.

In 2012, all categories of paper were imported to Russia in the amount of $627.7 million, with 78% of the import volume coming from the category of paper for writing, printing and other graphic purposes. The leading importers of this type of paper in 2012 were SAPPI, UPM and STORA ENSO. The volume of imports of these manufacturers of paper for writing, printing and other graphic purposes in 2012 amounted to 100.4, 93.4 and 78.8 million dollars, respectively.

The leading category in terms of exports from Russia in 2012 was newspaper paper. In 2012, more than 1.7 million tons of this category of paper were exported from Russia.

One of the largest Russian producers of paper and cardboard is OJSC Arkhangelsk Pulp and Paper Mill, which operates in four main areas: the production of paper, cardboard, pulp and fiberboard. The company is located in Novodvinsk and is a city-forming. The share of cardboard production of this plant in the all-Russian production is about 22%. If we consider the world's largest producers of paper and cardboard, the first two places are occupied by the American companies International Paper and Kimberly-Clark, whose sales volumes in 2012 amounted to $27.8 and 21.1 million, respectively.

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