International Boxboard Demand Examined at PPC’s Technical and Production Forum

SPRINGFIELD, MA—July 16, 2012—From June 26-27, 2012, the Paperboard Packaging Council (PPC) conducted its Technical and Production Forum in Springfield, MA to 40 folding carton plant managers, technical directors, and department leaders, as well as industry suppliers.

During the workshop, attendees discussed freight and shipping best practices, learned about the benefits of business automation, and received an update on fiber certification programs. In addition, twelve of the top exhibitors from drupa 2012, the world’s largest print show that was held this past May in Germany, described their latest advancements and innovations.

The highlight of Thursday’s presentations was an overview of the international boxboard market provided by Diana Weiss, associate economist at RISI.

Weiss began her discussion by closely analyzing the Asian boxboard market. Driven by a quickly growing demand for boxboard in China, she predicted that demand in Asia will increase by as much as 5.2 percent this year to reach 25 million tonnes by 2013. Of particular concern, however, was Asia’s current oversupply of virgin grades, much of which RISI believes will be exported to the United States over the ensuing years, continuing to depress the United States ability to grow its own boxboard exports.

Moreover, RISI predicts that over the next few years cartonboard demand will grow slowly in North America, remaining as much as 11 percent below 2007’s pre-recession peaks. Likewise, boxboard production is expected to remain stagnant during this time. However, with a growing demand for recovered fiber in Asia and the Middle East, RISI predicts that CRB and OCC prices will increase three percent annually over the next few years. Finally, she predicted a very slow growth (one to two percent) for folding carton production through 2016.

“Weiss’ presentation was a truly valuable addition to the seminar,” noted PPC president Ben Markens. “Her talk provided technical and plant personnel a broader perspective on the supply and demand aspect of their industry.”

For more information on the Technical and Production Forum, visit www.ppcnet.org/TP.

About the Paperboard Packaging Council (PPC)

Now in its 83rd year, PPC is the leading industry association serving suppliers and converters of all forms of paperboard packaging. PPC works to grow, promote, and protect the paperboard packaging industry while providing its members with resources and tools to compete effectively and successfully in the marketplace. For more information, call (413) 686-9191 or visit www.ppcnet.org.

Source: PPC.