SCUP Report

Table of Contents

Abstract

Between 2008 and 2013, world consumption of specialty paper chemicals is expected to decline at an average annual rate of 0.2% (on a volume basis). Specialty paper chemical consumption is expected to decrease at an average annual rate of 0.5% in the NAFTA region, decrease at a rate of 2.0% in Europe and grow at 0.2% in Japan during 2008–2013. However, growth in China will occur at a rate of 6.0% per year as new paper production capacity is added, and higher grades of paper are produced.

In 2008, world consumption of specialty paper chemicals was valued at approximately $16 billion; consumption of commodity chemicals for pulp and paper production was worth an additional $17 billion. Chemical and mechanical pulps account for approximately 50% of the total volume of raw material consumption while recycled paper accounts for a share of about 32%. Commodity-type chemicals such as chlorine and oxygen, hydrogen peroxide, sodium salts and sulfuric acid (used mainly in pulp production), and fillers and pigments (mostly China clay and calcium carbonate) represent about 15% of total raw material consumption. The remaining 3% consists of alum and aluminum compounds; specialty paper chemicals, including starches; and synthetic paper chemicals. To reduce costs and achieve environmental and regulatory compliance objectives, the use of virgin fibers (especially chemical pulps) and alum is expected to decrease, while recycled paper fibers, fillers and pigments, and specialty paper chemicals will extend their share in the raw material mix of the paper and board industry.

The following pie chart shows world consumption of paper chemicals:

Specialty paper chemicals can be classified into three groups according to their function and point of use in the paper production process:

• Pulp and fiber treatment chemicals
• Processing aids
• Functional chemicals

Specialty paper chemicals help reduce the consumption of water and energy and increase the use of wastepaper as well as save raw materials by decreasing the paper weight without sacrificing functional or optical properties of the paper sheet. They also enabled the tremendous speed increase of paper machines. Often, they are formulations of several chemicals, but there are many single-chemical products. Water treatment chemicals used in the paper industry are not included in the specialty paper chemicals category.

The following pie chart shows world consumption of specialty paper chemicals:

China's consumption of specialty paper chemicals reflects its disproportionately high production of lower-value grades of paper and paperboard, which have less need for specialty paper chemicals.

Quality requirements for new and existing products, productivity, costs and environmental issues in the papermaking process are the main driving forces for R&D activities, capital investment, growth in consumption, and selection of specialty paper chemicals. Trends for selected specialty paper chemical groups are as follows:

The increasing substitution of virgin wood pulp with recycled fibers (in regions other than the United States) will increase the use of deinking chemicals and specialty chemicals such as defoamers, chelates and thickeners.

• The increasing substitution of virgin wood pulp with recycled fibers (in regions other than the United States) will increase the use of deinking chemicals and specialty chemicals such as defoamers, chelates and thickeners.
• Fillers and coating pigments are increasingly used as less expensive replacements for pulp.
• Among the major issues impacting the global specialty paper chemicals industry are the following:
• Declining paper consumption in publishing
• Reduction in packaging, particularly in Europe, but also in NAFTA, as a result of "green" regulations
• Closed-loop water systems
• New demands on chemicals arising from the conversion of groundwood paper mills to alkaline or neutral papermaking processes
• The globalization of leading specialty paper chemical companies, paper companies and equipment manufacturers
• Automated, faster papermaking and printing speeds
• Consolidation and globalization among pulp and paper manufacturers
• Reduced R&D by paper companies and increasing reliance on suppliers

The major objectives for paper producers are attaining or improving profitability, meeting customer needs, and embracing technological change, particularly to meet regulations but also to meet the first two objectives. The changing needs of paper producers and a highly competitive marketplace create a very selective environment for improved, new and different specialty paper chemicals.