Although some of the economic data out of Europe in late 2013 and early 2014 were pointing toward recovery, forward momentum continues to be uneven at best throughout the European Union.
Two of the EU’s foremost battlegrounds for austerity measures—Spain and Italy—seem to be moving in different directions as of mid-2014. While hiring is improving in Spain, and other economic numbers are moving in a positive direction, Italy appears to be in the midst of its second consecutive quarter of gross domestic product (GDP) contraction.
Industrial production indices gathered by Eurostat point to May 2014 having been a busier month for factories compared with May 2013, though this forward progress was not present in every EU nation.
Manufacturing in Eastern Europe is booming, according to the Eurostat figures, while output in France, Italy, the Netherlands, Sweden and Finland has receded from one year ago.
While recovered fibre generation differs from nation to nation in the EU based on these scenarios, the overall slow-but-steady growth in the EU economy has produced steady demand from European paper mills, according to sources.
In terms of arisings, a broker in Western Europe says the ongoing trend of banks and office customers toward “digitalisation” continues to make office grades difficult to find. “We have to look for new donor countries,“ says the trader. Those collecting residential material continue to see a drop in old newspapers (ONP) collection, likewise because of digitalisation.
While France, Italy, the Netherlands and the Nordic countries struggle to create manufacturing momentum, Eurostat industrial production figures in some of the EU’s newest Eastern European nations are rising rapidly.
Among the big gainers in industrial production index figures from May 2013 to May 2014 are Hungary, from 103.8 to 113.7; Lithuania from 105.6 to 116.4; Slovakia 127.3 to 135; Czech Republic from 104.9 to 110.2; and Romania from 114.8 to 132.
On the buy side, the relative health of national economies and manufacturers in central and Eastern Europe has meant a lot of the material processed by packers and merchants is staying within Europe. The active mills in central and Eastern Europe, however, cannot mask an overall decline in the size of Europe’s paper industry.
In a July 2014 news release summarizing European papermaking statistics in the previous year, the Brussels-based Confederation of the European Paper Industry (CEPI) notes that “2013 is the third consecutive year paper and board production has declined [among CEPI members], since the rebound registered in 2010.”
CEPI members produced 91.1 million tonnes of paper and board in 2013, the organisation says. “This is a decrease of 1.2% (1.1 million tonnes) compared to 2012,” notes CEPI.
Some of Europe’s paper products have gone to the export market, adds CEPI. “On a positive note, CEPI countries maintained a positive trade balance for paper and board (exports exceeding imports) of 14.8 million tonnes [in 2013].”
On the recovered fibre export side, China remains the leading destination for scrap paper collected in Europe and North America. (See the feature article “Inside the box,” starting on page 24 of this issue.)
Hong Kong-based Lee & Man Paper Manufacturing Ltd., one of the largest containerboard manufacturers in China, announced its first-half 2014 earnings in July. The company says it recorded total sales volume of 2.2 million tonnes and total revenue of US$1.7 billion (€1.27 billlion), leading to a net profit of US$118 million (€88.3 million).