Perm pulpmill group: Containerboard market in Russia is close to saturation

The total output of Russian containerboard in 2013 amounted, according to the Perm pulpmill group (PTsBK), to 3.094 million tonnes (+8.7% on 2012), and the increase is almost entirely provided by recycled grades. The production of virgin-fibre board in the past year fell by 3.07%, output of semicellulose and recovered grades increased by 21.5% up to 1.649 million tonnes.

The largest increase was provided by Kamenskaya BKF (SFT Group), Nikol-Pak, Mayak, Sukhonsky PPM, Mariysky PPM, and Kommunar mill. Containerboard capacities already exceed domestic demand, and the market keeps the balance only due to the exports of virgin-fibre kraftliner, as the company’s report says.

At the same time, large manufacturers of corrugated packaging point to a lack of effective grades used in high-speed corrugators. The increased demand for recycled containerboard of lower grammage with high strength characteristics stimulates producers to implement modernization of their capacities. On the other hand, the slowdown of the Russian economy and unfavourable investment climate in the country make such upgrades almost impossible.

Perm pulpmill also has high-speed corrugator in its arsenal and therefore faces a lack of efficient raw materials. In this regard, the company intends to increase the production of cardboard up to 120 thousand tonnes in 2014, reduce the weight of manufactured cardboard to 90 g/m2, improve its strength and moisture absorption, as well as start producing new types of products: base paper for gypsum cardboard and containerboard with barrier properties.