FMN | February 27th, 2023

Demand for graphic paper remained was negative- ly impacted in 2022 (-1.8 percent) because of the de- clining demand observed in printing and publishing. Packaging paper and board demand remained rel- atively stable (+0.5 percent) based on figures avail- able for the first 9 months of the past year. The production of packaging grades is estimated to have decreased by 4.6 percent compared to 2021. Within packaging grades, case materials – mainly used for transport packaging and corrugated boxes recorded a decrease of 4.8 percent. The output of carton board plus other packaging board – mainly used for retail packaging – decreased by 4.1 per- cent. The production of wrapping grades – used for paper bag production – decreased by 5.2 percent. Packaging Grades The share of packaging grades accounted for 59.8 percent (59.1 percent in 2021) of the total paper and board production, with graphic grades accounting for 26.1 percent (27.7 percent in 2021). Output of all other grades of paper and board – mainly for industrial and special purposes – decreased by 6.1 percent, with a share of 4.8 percent of total paper and board production. Sanitary and household paper output increased by about 2.2 percent compared to 2021, to levels close to those reached during the Covid crisis and accounted for 9.3 percent of total paper and board production. The production of graphic grades fell by 11.3 per- cent. After an uptick in 2021, it seems now back on a downward trend. Newsprint decreased by 9.9 per- cent whilst printing and writing papers decreased by 11.5 percent, as a result of machine closures and conversions. The production of printing and writing papers decreased at different rates depending on precise grade categories. Output of coated mechanical pa- per and uncoated mechanical paper decreased by 19.5 percent and 13.2 percent respectively. Uncoat- ed wood-free grades - copy paper - have decreased by 5.8 percent, and coated wood-free grades by 12.0 percent. Overall, this means that production of coated and uncoated graphic papers decreased by 15.8 percent and 8.5 percent respectively. Production of wood- free graphics showed a decrease of 8.0 percent, whilst output of mechanical graphic papers fell by 16.3 percent. Based on cumulative data from the first nine months of 2022, it is expected that total paper European Paper, Board (Cont’d from Page 3)

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