Paper 1998

  1. Paper comes in a large range of types, but here the term is used to refer only to kinds of paper such as newsprint, printing paper and copier paper. Cardboard for corrugated cardboard boxes is not included.

  2. The raw materials for making paper are wood pulp (made from wood chips) and waste paper. These are mixed together in different proportions depending on the type of paper being made. Cardboard is made mainly from waste paper, but to make paper, which requires a high degree of whiteness, a high proportion of wood pulp is used. Pulp is imported mainly from North America and Scandinavia.

  3. Wood pulp can be divided into machine-made pulp and chemically treated pulp according to the method of production. Machine-made pulp is made by crushing wood, and the approximate yield is a relatively high 95 percent. It is, however, lacking in whiteness and strength and so is used largely for newsprint. In the case of chemically treated pulp, coloring in the wood is removed chemically : the yield is only around 50 percent, but its superior strength and whiteness makes it suitable for such uses as printing paper and wrapping paper.

  4. Total output of paper in Japan is the world's second largest, totaling approximately 31 million tons in 1997 (up 3.3 percent over the previous year). The world's leading producer of paper is the United States, with an output of some 86 million tons. Third is China, followed by Canada, Germany, Finland, Sweden, France, South Korea and Italy.

  5. Output of paper in Japan can be broken down as follows :

    1988 1996
    Newsprint 3,066,830 3,139,987
    Non-coated printing paper 3,160,770 3,183,769
    Fine coated printing paper 479,530 1,328,097
    Coated printing paper 2,468,411 4,095,535
    Special printing paper 331,702 405,090
    Information-machine paper 1,160,288 1,779,238
    Paper for sanitary products
    1,280,918 1,647,920
    Wrapping paper 1,128,512 1,085,745
    Miscellaneous paper 1,265,773 1,101,401
    Total 14,342,734 17,766,762
    (Unit = tons)

    Output of fine coated printing paper, coated printing paper, information-machine paper and paper for sanitary products was noticeably higher in 1996 than 1988. Higher output of information-machine paper was due to growth in demand for paper for flyers, advertisements and mail-order catalogs, and growth in paper for sanitary products was due to increased demand for diapers for children and the elderly. The growth in output of printing paper was accounted for by more copying in offices and homes and greater demand for equipment manuals and related magazines.

  6. Exports totaled 351,651tons in 1988 and 476,857tons in 1996, accounting for 2.45 percent of total output in 1988 and 2.68 percent in 1996. Destinations for exports were as follows :
    1. Newsprint(1996)

      Volume (tons)
      Value (JPY million)
      Taiwan 14,996 1,184
      Hong Kong 11,923 855
      China 1,558 142
      India 930 75
      Singapore 722 50
      Malaysia 395 35
      Bangladesh 435 27
      North Korea
      58 8
      Sri Lanka 104 8
      Total 31,127 2,384
    2. Printing and information-machine paper(1996)

      Volume (tons)
      Value (JPY million)
      Hong Kong 127,455 14,719
      China 44,987 4,835
      Singapore 32,536 3,929
      Taiwan 23,881 3,120
      Malaysia 25,311 2,936
      U.S.A. 17,856 2,460
      Thailand 20,486 2,434
      Australia 15,608 2,088
      Philippines 10,607 1,216
      Total 318,727 37,737

  7. Imports in 1988 totaled 836,953 tons, and 1,317,931 tons in 1996, or 5.84 percent of total output in 1988 and 7.42 percent in 1996. It is clear from the figures that imports are on the rise, and import growth from Asian countries can be expected to continue due to the depreciation of their currencies.
    Sources of imports were as follows :
    1. Newsprint(1996)

      Volume (tons)
      Value (JPY million)
      U.S.A. 328,631 32,113
      Canada 268,460 24,823
      Finland 23,655 1,944
      Sweden 16,564 1,313
      Norway 450 40
      South Korea
      122 8
      Germany 2 2
      U.K. 1 1
      Total 637,885 60,294
    2. Printing and information-machine paper(1996)

      Volume (tons)
      Value (JPY million)
      Finland 265,474 29,356
      U.S.A. 115,627 13,796
      Austria 35,295 3,980
      France 27,927 3,635
      Italy 18,298 2,263
      Canada 22,093 2,089
      Brazil 19,183 2,036
      Sweden 16,901 2,000
      Norway 20,484 1,990
      Total 541,282 61,145

  8. Although the paper market (including cardboard) could be described as mature, demand is increasing slightly year by year. Despite the fact that this is the age of the computer, when demand for paper should theoretically be falling, paper is in fact being used in larger quantities as people tend to print out data instead of saving on floppy disks. As faxes and personal computers become more widely used at home, use of paper will increase still further. Each individual Japanese uses the equivalent of 40,000 sheets of A4 a year, which is roughly the equivalent of one ton of wood, and this is contributing to the depletion of the world's forest resources and the destruction of the global environment.

  9. The leading Japanese paper manufacturers have started their own afforestation programs overseas (in Australia, Tasmania, Indonesia, Brazil, etc.) in order to secure sources of imports of raw materials. Although they are working on improving the technology for recycling paper in order to help conserve natural resources, at this stage it still costs slightly more to produce high quality recycled paper than new paper. Costs will have to be reduced further, however, as government agencies and similar organizations are specifying that recycled paper be used.

  10. Paper distribution channels
    1. Approximately 87 percent of purchases are made by agents from makers, 12 percent are from wholesalers, and 1 percent is imported. Approximately 78 percent of purchases by trading firms are from makers, imports account for some 17 percent, and the remaining 5 percent was purchased from wholesalers. In the case of wholesale dealers, approximately 81 percent of purchases are from other wholesalers, 18 percent from makers, and the remaining 1 percent is imported.
    2. Approximately 97 percent of sales are by agents to wholesalers, exports account for approximately 2 percent, and the remaining 1 percent is sold to retailers. Approximately 95 percent of sales by trading firms are to wholesalers, and exports accounted for 5 percent.
      Sales by trading firms to retailers are nearly zero. In the case of wholesale dealers, approximately 97 percent of sales are to other dealers, sales to retailers account for approximately 2 percent, and the remaining 1 percent is exported.

  11. As pulp is imported for sale to makers, some trading firms are reluctant to import paper themselves. Some leading trading firms do not worry about the makers they sell pulp to, however, and import paper directly for sale through affiliated agents. Other trading firms market domestically manufactured paper within Japan and also export it.

  12. Demand for paper appears unlikely to expand dramatically in the years to come, and growth is likely to equal the rate of growth in GDP. The depreciation of the yen has made imports less attractive, but a rate of JPY110 to the dollar would see a substantial increase in imports. If one takes into account the impact of environmental issues, future increases in exports from Asia appear highly.

    Source : "Yearbook of Paper and Pulp Statistics, 1996" (MITI Research and Statistics Dept., ed.).



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