Last year brought a turnaround for the CMR sector as capacity contracted for the first time ever. This marks a contrast with the earlier part of the decade, when producers added increasing amounts of capacity to the market, which caused some industry pundits to voice concerns of over-supply. The Delivery-Capacity balance remained relatively stable last year at 89%. However, taking into account the depressed rate in 2005 due to the Finnish situation, 2006 would probably have recorded a drop in balance if the strike/lockout had not taken place.

The sector witnessed the shutdown of some important production units during the course of the year. UPM closed its Voikkaa mill in Finland, which had a capacity of 410,000 tonnes/yr of coated magazine paper at the end of June. During the same period, Stora Enso halted production on PMs 3 and 4 at its Corbehem mill in France. The move took some 250,000 tonnes/yr of LWC capacity off the market. Also in 2006, the Burgo Group closed the Italian Marzabotto mill, removing around 60,000 tonnes of coated mechanical capacity from the sector.

CMR deliveries to North America suffered a drop in the first six months of 2006 due to temporarily inflated figures in 2005. A 9-month strike at UPM’s Miramichi mill in Canada had led to a sharp rise in European exports to the region in the first part of 2005. However, last year’s shortfall was made up by a healthy increase in exports to Eastern Europe and the Far East in the middle months on the back of the Finnish work situation. In July, there was a 70% rise in shipments to Asia, as well as a 59% rise in deliveries to North America (the first positive figure for that region last year). Shipments to Eastern Europe grew by 18% over the year, representing an additional 117,000 tonnes being sent to the region.

Germany remains the largest Western European market for CMR with 29%, followed by Great Britain (14%). Italy and France are equal, each with a 13% market share. The ranking for the largest Western European producers in the sector is unchanged from 2005 with Finland taking first position with 36%, then Germany (26%), Italy (11%) and Sweden (8%).

Graphs and tables

Delivery & Capacity Development
Delivery - Capacity Balance
Delivery - Capacity Development
W.E. Deliveries - by Destination
W.E. Exports: Volume and %-Share of Total Deliveries
Sub-Quality Development - Deliveries
Largest Western European Markets
Largest Western European Producers
Demand Development per Largest Market
Demand Development per Second Largest Market
Capacities
Deliveries By Destination - Total Coated Mechanical Reels
Deliveries By Destination - Medium Weight Coated (MWC)
Deliveries By Destination - Light Weight Coated (LWC)