The most recent figures from the American Forest and Paper Association show the production of recycled paperboard trending downward. The decline is problematic, considering total paperboard production has been showing signs of an improvement over the past several months.
Recent statistics show that while total paperboard improved by 2.8 percent over the first two months, recycled paperboard production declined by 0.7 percent to 2.463 million tons.
Two of the three key components in the recycled paperboard industry posted disappointing numbers for the year so far. According to the figures, recycled linerboard production dropped by close to 8 percent for the first two months, compared to figures the same time last year. The decline comes while total linerboard production showed a 2.6 percent increase, with unbleached linerboard, the largest component of the linerboard sector, climbing by 5.9 percent.
For February, recycled linerboard stands at 274,000 tons, while total linerboard production stands at 1,505 million tons.
The production of recycled corrugated medium also posted disappointing numbers for the year. According to the AFPA, recycled medium declined by 5.3 percent over the first two months, compared to the same time last year. Meanwhile, total corrugated medium production climbed 3 percent, with the other component of the medium industry, semichemical, up a sharp 9.4 percent.
Finally, the production of recycled boxboard declined by 1.5 percent from the same time last year. The decline is in direct contrast to total boxboard production, which improved by 3.6 percent from figures the same time last year.
The key reason for the decline in recycled paperboard production has been the closing of a host of recycled paperboard mills. Often time these mills are deemed inefficient, resulting in the shutting of these operations as many paperboard companies seek to balance supply and demand.