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Report: U.S. containerboard, tissue capacity expands in 2020, paper declines

The American Forest & Paper Association (AF&PA) has released its annual paper industry capacity report, citing an expansion in containerboard and tissue and a decline in paper and paperboard.

The 61st Paper Industry Capacity and Fiber Consumption Report indicates overall U.S. paper and paperboard capacity declined 1.6 per cent in 2020, compared to the average decline of 1.1 per cent per year since 2011.

Notably in 2020, containerboard capacity expanded, continuing a decade-long trend, and reaching a record high of 40.4 million tons. Tissue paper capacity has also been trending upward, increasing for the past five years, as well as eight of the last 10 years.

Meanwhile, U.S. mill consumption of recovered fibre reached the second-highest level in the past decade. The increase was driven by mill consumption of corrugated, the largest grade of recovered fibre, which reached a record high of 22.8 million tons in 2020.

Boxboard was the only packaging grade to decline last year, however survey responses indicate a slight rebound in 2021.

Experiencing continued secular decline from displacement by electronic communication, capacity for newsprint and printing-writing papers decreased in 2020, with capacity for both grades declining in the past decade. Some machines that historically produced printing-writing papers have been and are being repurposed to produce containerboard and packaging paper.

Survey responses indicate total paper and paperboard capacity will remain essentially flat, decreasing less than one-half of one percent in 2021.

The survey reports U.S. industry capacity data for 2020 and 2021 for all major grades of paper, paperboard and pulp, as well as fibre consumption, based on a comprehensive survey of all U.S. pulp and paper mills. Survey data includes responses from companies representing more than 86 per cent of U.S. paper and paperboard industry capacity, with estimates completing the data set.

The complete survey with detailed tables is available for a fee. Contact Kory Bockman at kory_bockman@afandpa.org or 202-463-4716 for this report or other industry reports.