AF&PA reports Q4 2023 containerboard production down slightly from last year

In its final quarterly report for 2023, the Washington-based American Forest & Paper Association (AF&PA) reports that total containerboard production in the fourth quarter of 2023 increased 12 percent compared with the fourth quarter of 2022, but is down 3 percent overall compared with the same 12 months of 2022.

New supply of containerboard, which is domestic production plus imports, ended the year 3.5 percent below 2022 levels as total production declined and the share of exports increased.

According to the report, mill inventories ended the fourth quarter at 447,000 short tons, and while that is the highest level of the year, it comes in 2.7 percent below mill inventory levels at the end of 2022.

The report shows that operating rates for all major grades, except recycled medium, increased quarter over quarter, with total production up 2.6 percent, and total production for export also was up 2.6 percent. The AF&PA says it had been trailing year-ago levels through the first three quarters of 2023, but finished the year strong as fourth-quarter exports were more than 60 percent higher than in the fourth quarter of 2022.

Overall, boxboard production was down across most areas.

The AF&PA reports total boxboard production in the fourth quarter of 2023 is down 10 percent compared with the fourth quarter of 2022, while the 82.2 percent boxboard operating rate is down 4.9 points compared with Q4 2022.

Solid bleached folding and unbleached kraft and gypsum production are down 6 percent and 3 percent compared with the fourth quarter of 2022, respectively, and coated recycled boxboard unmade orders were up 9 percent compared with September 2023 and down 34.7 percent year to date.

The organization also released printing and writing paper and packaging paper reports earlier this month.

Total printing and writing paper shipments decreased 14 percent in December 2023 compared with December 2022, the AF&PA reports, and U.S. purchases of total printing and writing papers decreased 25 percent in November 2023 compared with November 2022 while inventory levels increased 3 percent month over month.

The report shows that, individually, U.S. purchases in all three major printing and writing categories—uncoated free sheet, coated free sheet and mechanical—also decreased in November.

Finally, total packaging papers and specialty packaging shipments in December 2023 were essentially flat compared with December 2022 and down 1 percent compared with the same 12-month period of 2022.