Australia’s balance of trade in printing and communication grade papers fell to AUD488.3 million in 2018, ending below AUD500 million for the first time in at least two decades. The deficit declined 2.6% on 2017’s previous low.

The value of imports was also down 2.3% over the year, totalling AUD578.9 million. Importantly, the volume of imports was down a far steeper 7.2% over the year (to 590.2 kt), meaning it was rising prices that held the value decline to just one third of the decadal average.

• AUD488.3 million in 2018
• 2.6% improvement on 2017
• Import value down 2.3% to AUD578.9 million
• Export value down 0.5% to AUD90.5 million

Over the decade shown in the chart, the total value of imports has declined by more than half, plunging an average 7.2% per annum. Despite the momentary and shallow recovery in 2010 after the devastations of the GFC in 2009, the value of imports has fallen continuously for more than a decade.

It is impossible to avoid the impact of falling consumption in the latest balance of trade data, or that of the last decade. Equally significant, the solid price rises over the year were the sole saviour for constantly falling value.

This sobering data is a reminder that in a rational market, paper (or any other product for that matter) retains its value to those who seek to use it. The race to the bottom, in terms of price, hastens the end of supply and ultimately, therefore of consumption, which for the customer that needs a print solution, would be no use at all. The only solution that sustains supply is rising prices.

The February 2019 edition of Pulp & Paper Edge includes extensive details on Australia’s Printing & Communication paper markets.