The shipment volume of plastic bags and burlap bags in the United States increased by 19.2%, and the demand for plastic paper rose

According to data released by the American Forestry and Paper Association this week, shipments of unbleached packaging paper in the United States increased by 14.5% in the three quarters of this year, reaching 206000 tons, and production capacity increased by 114000 tons.

According to Fastmarkets' PPI Pulp and Paper Week pricing survey, the increase in demand is due to the rising pricing of all major grades of unbleached kraft paper. The content of 50 pounds unbleached stretchable multi-layer bags, 50 pounds unbleached natural multi-layer bags, and 30 pounds bleached grocery bag paper has increased. The prices of 50 to 70 pounds of unbleached grocery bag paper and 30 pounds of unbleached processed bag paper have also increased.

Since the beginning of the year, the shipment volume of unbleached bags and burlap bags has increased by 19.2%, reaching 951000 tons, accounting for 60% of the total shipment volume of unbleached packaging paper. The shipment volume of processed and other unbleached packaging paper has increased by 6.3%, totaling 342000 tons. So far this year, the shipment volume of multi-layer paper has increased by 12.3%.

Market participants indicate that the shift of packaging companies from plastic to paper packaging, especially Amazon's efforts to eliminate plastic bubble wrap, are the reasons for the increase in shipments.

However, with the increase of domestic production capacity, the percentage of imports to exports in the US market has decreased compared to last year. In the first three quarters of this year, the United States exported 301000 tons of packaging paper and imported 380900 tons, a difference of 80000 tons. In the first three quarters of 2023, the United States imported 104000 tons more than exported.

Last year, ND Paper started machine 26 at its Biron factory in Wisconsin to produce recycled unbleached packaging paper and recycled boxboard paper. That is the largest production capacity startup company in the United States. In addition, a few months ago, White Birch Paper launched a recycling machine at its Stadacona factory in QC to produce unbleached packaging and corrugated paper. Stadacona will be launched at the end of August/early September.

This week's report states that the unbleached price of 30 pounds of lightweight processed bag paper increased by $30/ton last month, and the price of 50 to 70 pounds of grocery bag paper increased by $10/ton. The contact stated that the increase in demand from Amazon is a key reason for the price hike, as only one manufacturer in North America has announced a price increase. According to this week's report, another one has also been eliminated. A buyer reported that as of now, a large manufacturer has not charged any price increase fees. The company also adopted a similar approach earlier this year.

At the same time, it is said that the activities of downstream processing factories are beneficial for bags and burlap bags, as well as gap filling and envelope mailing.

The bag making factory is very busy now. They have more demand for retail stores than at any other time of the year. They also have grocery stores, "said a supplier of unbleached packaging paper.

I am surprised by the level of demand growth for lightweight unbleached processed bag paper. This has been happening throughout the month. There has been a lot of activity within this weight range (30 pounds and 40 pounds), especially 40 pounds, "said a contact person with the factory.

Another factory contact said that the demand for 30 pounds is impressive.

30 pounds is usually used for gap filling, and 40 pounds is used for mailing envelopes, such as Amazon and other envelopes.

As of October 17th, a factory contact has reported orders for December.

For natural multi-layer and stretchable high-quality multi-layer kraft paper bags used for cement bags, the contact person expressed a consistent or better demand.

A buyer who purchased stretchable high-strength unbleached kraft paper said, "The kraft paper there is very sturdy. There is a demand for (cement) bags. It is difficult to quickly obtain the paper

The demand is improving, "said the manufacturer of 50 pound natural multi-layer bags of unbleached paper," for use in (holiday) baking and the food industry