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News

Russian newsprint export recovers

The export of newsprint is crucial to Russian pulp and paper industry. Catering to the global markets has been a traditional source of income for Russian pulp and paper mills for a long time. However, there was a significant decrease in export volumes over the past two years. For instance, the shipments fell by almost 25 percent in the first three quarters of 2013 year over year. In 2014 the situation started to improve. Pulp and paper plants began to target the emerging economies. As a result, in the first three quarters of 2014 the sales volume increased by 13 percent to 873,400 tonnes. The value of exports grew by 15 percent to $470.35 million.

During the past two years Russian newsprint industry changed its strategy towards increased exports to the new strategic trade partners, such as India and Turkey. The consumption of newsprint has been growing in both countries, and they currently are the two largest buyers of Russian newsprint. In the first three quarters of 2014 the export on newsprint to India increased by 9 percent to 94,000 tonnes and the values of exports increased by 8 percent to $86 million. The volume of newsprint exports to Turkey was smaller by a third than exports to India. At the same time the sales grew by 11 percent to 66,000 tonnes. The price also increased slightly, and the value of exports increased by 12 percent to $59 million.

The newsprint exports to Germany increased substantially this year. During the first three quarters of 2014 approximately 45,000 tonnes were shipped to Germany; this is a 48 percent growth year over year. The price decreased during that period. As a result, the value of exports increased only by 37 percent to $31 million.

Egypt is another strategic trade partner. There was a substantial increase in newsprint export. Thus, during the first three quarters of 2014 approximately 27,000 tonnes were shipped to Egypt, constituting a 37 percent growth year over year. The prices also dropped, and the value of exports during the same period increased only by 29 percent to $20 million.

It is worth mentioning that quite a few countries import newsprint from Russia. The largest importers, such as India, Turkey, Germany, Ukraine and Egypt, account for one third of total newsprint exports during the first three quarters of 2014.