CHIUDI

BRUSSELS, May 11, 2020 (Fastmarkets RISI) - Italian paper and board (P&B) production was stable year on year in the first two months of 2020, but with remarkable differences between grades, according to the latest data from the Italian association of pulp, paper and board producers Assocarta. Graphic paper production fell by 8.6% year on year, with coated grades falling by 11.9% and woodfree papers improving by 0.8%. Tissue and specialty paper production grew by 1.8% and 6.3% year on year, respectively during the period, while packaging paper production increased by 3.0%, with containerboard rising by 5.0% and wrapping and packaging paper improving by 0.6%.   According to data from Assocarta based on a selected number of companies, graphic paper production plummeted by 17% year on year in March, while tissue and packaging paper production increased by 5-6% and 1%, respectively. The Italian paper industry’s revenues plummeted by 9.1% year on year in the first two months of the year because of price reductions in all paper grades. In terms of raw material, paper for recycling (PfR) prices started to increase in March because of a shortage due to the spread of Covid-19 in the country. “The decreasing trend [of PfR prices] due to oversupply stopped in February when the spread of Covid-19 and the measures taken by the national government reversed the situation […] and PfR collection was not sufficient to satisfy the growing demand from paper mills,” Assocarta said. It added: “As a consequence, prices for all PfR grades rose between March and April, by Euro 20-25/tonne ($22-27/tonne) on average and by more than Euro 35/tonne for old corrugated containers, while paper prices remained stable.”

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