Printing paper prices up 2.1% in November: IndustryEdge’s Australasian Paper Price Index

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The Australian and New Zealand three-month moving average trade price of printing and communication papers* rose 2.1% in November 2020, compared with the prior month. Measured in US dollars, the monthly average price was USDFob767/t, the highest monthly average price since July 2019.

The quarter-on-quarter average price declined 1.8% as the region’s quarterly average trade price rested at USDFob723/t in November, down 3.3% on the prior year.

Below, the index chart demonstrates how the market has moved in recent months.

Source: IndustryEdge’s Australasian Paper Price Index, data sourced from ABS and Statistics NZ

 

In November 2020, based in US dollars and commencing in January 2017, the three-month moving average index numbers were:

 

Oct ‘20

Nov ‘20

Comparison with Prior…

Month

Quarter

Year

ANZ (Australasia)

97.4

99.4

+2.1%

-1.8%

-3.3%

Australia

98.5

100.9

+2.5%

-1.8%

-4.4%

New Zealand

98.2

97.5

-0.7%

-4.7%

+3.2%

 

IndustryEdge’s analysis of the latest data indicates two main factors moved the Australasian index in November.

First, softer import volumes for the month were mainly focussed on higher priced grades of paper being imported, with some lower value grades experiencing sharp falls, especially in Australia. The remaining grades therefore had a greater influence over the average price of paper in the market.

IndustryEdge’s Tim Woods said:

“It would be a mistake to assume that declining paper consumption will always lead to lower prices. The recent experience shows falling import volumes are regularly seeing the most important grades being consistently imported. These are the grades that typically command the highest prices, and that is what we saw in the November price movements.”

Second, there are some instances where the major movements in prices are driven by currency fluctuations. In November 2020, the softness in the US dollar continued to impact the indexes. Both the Australian and New Zealand dollars appreciated against the US dollar.

The Australian index rose 6.3% in Australian dollars in November 2020, compared with the 2.5% rise in the US dollar index.

The New Zealand index fell 6.8% in New Zealand dollars in November 2020, compared with the 0.7% fall in US dollar index.

IndustryEdge’s Australasian Paper Price Index is presented on a three month, moving average basis, smoothing out monthly fluctuations, but at the same time ensuring it remains up to date, reflecting primarily the most recent market movements. The index is weighted based on the volume and value of imports of all of the main grades of printing and communication papers into each country.

IndustryEdge’s market leading understanding of regional paper markets brings together the Australian and New Zealand import data, for the main paper grades, using free-on-board prices to ensure any freight cost differentials do not pollute product pricing data. The headline public index is based on US dollars.

Subscribers to IndustryEdge’s unique Pulp & Paper Edge Data and Information Service, are discussing whether the headline index and sub-indexes should also be available to them in Australian dollars and New Zealand dollars.

Organisations that need to understand paper markets may contact IndustryEdge for a confidential discussion on their needs, including how they can access the latest and most detailed data services.

P:         +61 (0) 3 5229 2470

E:         info@industryEdge.com.au

W:        www.industryedge.com.au

* Includes most coated and uncoated woodfree and mechanical papers, including newsprint, copy paper and the paper grades used for printing brochures, inserts, catalogues, magazines, books and the paper used in general commercial printing activities.

 Users, including media, are requested to reference the index as ‘IndustryEdge’s Australasian Paper Price Index’. The chart presented here may be copied and published only in its current form and referenced as ‘IndustryEdge’s Australasian Paper Price Index’.

 

About IndustryEdge

IndustryEdge is the leading trade data, market analysis and intelligence firm in the fibre resources, wood products and pulp & paper sectors in Australia, New Zealand and the Asia Pacific.

Established in 1991, the firm publishes data focussed, independent, monthly market analysis through the Pulp & Paper Edge Data and Information Service and via Wood Market Edge online.

Learn more at www.industryedge.com.au.

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