FAO Advisory Committee

on Paper and Wood Products

Thirty-ninth Session

Rome, 23-24 April 1998

Proceedings


State of the Industry

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THAILAND

Economic growth

The GDP growth rate in Thailand has continually increased during the years 1993, 1994, 1995 and 1996 by 8.3 percent, 8.7 percent, 8.6 percent and 6.4 percent, respectively. At the end of 1995, Government policy deliberately slowed down the GDP growth rate to a suitable level in order to reduce the pressure of both inflation and loss in current account, and this financial policy was particularly strict from 1995 through 1996.

In 1997, the GDP of Thailand was approximately zero growth, shrinking from 1996 as a result of the economic crisis reducing domestic consumption and private investment. The growth of the manufacturing sector sank by 0.6 percent in 1997, reduced from 7.3 percent in 1996, while the growth of the export sector increased from -1.9 percent in 1996 to 3.2 percent in 1997.

Growth Sector

Average Growth Rate (%)

Actual Growth Rate (%)2

1987-19911

1992

1993

1994

1995

1996

Est. 19973

GDP

Agriculture

Manufacturing

Export

Pulp & paper industry

10.8

3.4

13.9

24.6

15.5

8.1

6.0

11.3

13.2

12.4

8.3

-1.9

11.1

13.0

16.3

8.7

5.5

9.3

21.3

16.1

8.6

3.0

11.0

23.6

7.2

6.4

3.0

7.3

-1.9

13.5

0.6

2.2

0.6

3.2

5.0

Remarks : 1 = 6th National Economic Plan

2 = 7th National Economic Plan

3 = Bank of Thailand

The growth rate of the pulp and paper industry decreased from 13.5 percent in 1996 to 5.0 percent in 1997. The growth rate of the pulp and paper industry in Thailand has dropped significantly as a result of the change in world pulp and paper prices, as well as the economic recession in Thailand in 1997.

The Pulp and Paper Industry’s Performance

Domestic capacity

Pulp

In 1997 the total annual production capacity for short fibre pulp remained constant. The existing six pulp mills, namely Phoenix Pulp and Paper Public Company Limited, Advance Agro Public Company Limited, Panjapol Paper Industry Public Company Limited, The Siam Pulp and Paper Public Company Limited, Siam Cellulose Co. Ltd. and Bang Pa-in Pulp and Paper Mill still maintained their capacities of 210 000, 175 000, 110 000, 68 000, 60 000 and 3 000 air-dry tons per annum, respectively.

 

Unit: 1000 tons

Company

Pulp Production Capacity


1996

1997

Phoenix Pulp and Paper

210

210

Advance Agro

175

175

Panjapol Pulp Industry

110

110

Siam Pulp and Paper

68

68

Siam Cellulose

60

60

Bang Pa-in Pulp and Paper Mill

3

3

Total

626

626

Paper

In 1997 there were 47 paper mills with a combined annual capacity of 3 236 000 tons, a 13.9 percent increase compared to the 2 842 000 tons in 1996 which included the new pulp and paper mill, namely Advance Agro Public Company Limited with 470 000 tons per annum.

Total paper capacities in 1997 can be categorized into 1 804 000 tons for kraft paper, 883 000 tons for printing and writing paper, 217 000 tons for paperboard, 120 000 tons for newsprint paper, 132 000 tons for household and sanitary paper and 80 000 tons for gypsum plaster board liners (other papers).


Paper Capacity


1996

1997


1000 tons

1000 tons

%

Kraft paper

1 625

1 804

56

Printing and writing paper

631

883

27

Paperboard

264

217

7

Household and sanitary paper

132

132

4

Newsprint

110

120

4

Other papers

80

80

2

Total

2 842

3 236

100

Consumption, import and export

Pulp and wastepaper

 

In 1997 the total demand for raw material fibre in Thailand was 2 428 000 tons, a 6.7 percent increase over 1996. Of this amount, 12 percent, or 304 000 tons, was long-fibre pulp, 23 percent, or 559 000 tons, was short-fibre pulp and the rest, 1 565 000 tons, was wastepaper.

The prices on the world pulp market, for both short fibre and long fibre, have slightly increased since the middle of 1996 and kept going until the end of 1997.

In 1997 Thailand imported 349 000 tons of short-fibre and long-fibre pulp, mainly from USA, Canada, Chile, Brazil, New Zealand, Sweden, Indonesia and the Czech Republic. Coniferous bleached chemical wood pulp, coniferous unbleached chemical wood pulp and non-coniferous bleached chemical wood pulp, which account for 46 percent, 36 percent and 11 percent of total imported pulp respectively, were the main imports. Thailand also imported 622 000 tons of wastepaper during the same period from USA, Singapore, Germany, Netherlands, New Zealand and Hong Kong. The major kinds of imported wastepaper were old corrugated containers (OCC), representing 66 percent of the total amount imported.

In the same period, 103 000 tons of pulp were exported. The main destinations were mostly in Asia such as India, China, South Korea, Indonesia, Taiwan and Japan, as well as Italy.

Unit : ‘000 tons


1996

1997

Short-fibre pulp -Demand

- Import

- Export

475

104

131

559

45

103

Long-fibre pulp -Demand

- Import

- Export

241

241

-

304

304

-

Wastepaper -Demand

- Import

- Export

1 560

582

-

1 565

622

-

Paper

The demand for paper in Thailand decreased by 3 percent from 2 360 000 tons in 1996 to 2 290 000 tons in 1997. The domestic consumption of paper could be categorised as follows: 50 percent for kraft paper, 17 percent for printing and writing paper, 16 percent for newsprint paper, 7 percent for paperboard, 3 percent for household and sanitary paper and the rest for other papers.

 

In 1997 Thailand imported 417 300 tons of paper and paperboard. The major import was newsprint paper which accounted for 41 percent, followed by 17 percent for paperboard, 11 percent for printing and writing paper, 7 percent for kraft paper, 2 percent for household and sanitary paper, and the remaining 22 percent for others.

In the same period Thailand also exported 525 500 tons of paper, of which 40 percent was paperboard, 36 percent was kraft paper, 12 percent was printing and writing paper, 4 percent was household and sanitary paper, 1 percent was newsprint paper, and the remaining 7 percent for others.

Unit : ‘000 tons


Demand

Import

Export


1996

1997

1996

1997

1996

1997

Kraft paper

1 118

1,150

31

31

70

190

Printing and writing paper

425

395

70

46

47

65

Paperboard

269

151

67

69

41

211

Newsprint paper

357

375

206

171

14

3

Household and sanitary paper

76

74

11

6

17

23

Other papers

115

145

85

93

16

34

Total

2 360

2 290

470

417

205

526

Outlook for the future

Trends in the Pulp Industry During 1998-2001

Domestic pulp consumption is expected to decrease from 863 000 tons in 1997 to 729 000 tons in 1998 and increase to 845 000 tons in 2001, an average growth rate of 5 percent per annum. The consumption of short-fibre pulp will decrease from 559 000 tons in 1997 to 464 000 tons in 1998 and rise to 545 000 tons in 2001, while production capacity is expected to expand from 626 000 tons in 1997 to 878 000 tons in 1998 and 1 128 tons in 1999, respectively. The additional capacities in 1998 will be from Advance Agro Public Company Limited with 252 000 air-dry tons per annum. Moreover, other newcomers are expected in 1999: Asia Tech Pulp and Paper Public Company Limited with an annual production capacity of 150 000 tons and Thai Pulp Industry with an annual production capacity of 100 000 tons. As a result, Thailand will have a surplus of short-fibre pulp for exporting.

Unit : 1000 t/a


1997

1998

1999

2000

2001

Demand -Short-fibre pulp

-Long-fibre pulp

559

298

464

265

503

278

523

288

545

300

Capacity -Short fibre pulp

-Long fibre pulp

626

-

878

-

1 128

-

1 128

-

1 128

-

Surplus (shortage) -Short fibre pulp

-Long fibre pulp

67

-

414

-

625

-

605

-

583

-

Trends in the Paper Industry During 1998-2001

Total annual demand for paper and paperboard in Thailand is expected to decrease from 2.29 million tons in 1997 to 2.08 million tons in 1998 and gradually increase to 2.33 million tons in 2001, an average growth rate of 4 percent per annum. Thailand will also have a surplus of paper from 1997 to 2001. During the next four years, kraft paper will account for 47 percent, newsprint paper for 19 percent, printing and writing paper for 14 percent, paperboard for 7 percent, household and sanitary paper for 5 percent and the rest will be a miscellaneous minority of total paper consumption.

The projected demand and supply of paper in Thailand during 1997-2001 is shown in the following table :

1997-2001 projected demand and supply of paper in Thailand

Unit : 1000 t/a


1997

1998

1999

2000

2001

Kraft paper

-Demand

-Capacity

Surplus (shortage)

 

1 150

1 804

654

 

1 010

1 927

917

 

1 040

2 020

980

 

1 071

2 124

1 053

 

1 103

2 142

1 039

Printing and writing paper

-Demand

-Capacity

Surplus (shortage)

 

395

883

416

 

295

973

678

 

295

1 061

766

 

304

1 061

757

 

320

1 061

741

Paperboard

-Demand

-Capacity

Surplus (shortage)

 

151

217

66

 

150

214

64

 

155

214

59

 

159

214

55

 

164

214

50

Household and sanitary paper

-Demand

-Capacity

Surplus (Shortage)

 

74

132

58

 

85

155

70

 

95

155

60

 

101

170

69

 

108

170

62

Newsprint

-Demand

-Capacity

Surplus (shortage)

 

375

120

(255)

 

380

120

(260)

 

400

120

(280)

 

420

120

(300)

 

440

120

(320)

Others

-Demand

-Capacity

Surplus (shortage)

 

145

80

(65)

 

160

80

(80)

 

171

80

(91)

 

183

80

(103)

 

196

80

(116)

Total

-Demand

-Capacity

Surplus (shortage)

 

2 290

3 236

946

 

2 080

3 283

1 203

 

2 156

3 650

1 494

 

2 238

3 769

1 531

 

2 331

3 787

1 456

Population (1 000 000 man)

60.8

61.4

62.4

63.4

64.3

Per caput consumption

(kg/head)

37.7

33.9

34.6

35.3

36.3

 

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