Global uncertainty in the market for forest industry products continued for the fourth year. Demand has strengthened during the year in advertising-driven paper grades but overcapacity in the supply has kept prices low. The packaging board market has been rated stable regarding both demand and prices. Demand for wood products was strong in whitewood but the redwood market was weaker due to European overcapacity.
Gross Domestic Product rates have traditionally been a leading indicator for increases in paper and board consumption, though population growth and urbanisation are key elements affecting future consumption in various locations. Ongoing restructuring in both supplier chain and customer base, and changing consumer behaviour patterns also influence the market, prompting a need for greater cost competitiveness and enhanced levels of service. The table below shows total consumption of paper and board per main market area:
