Coated mechanical paper is a type of printing paper. These papers are produced by mechanically grinding wood into pulp. Coated mechanical paper is produced from mechanical pulp in which wood is still present with lignin. The lower category of premium coated papers is known as coated mechanical papers. Coated mechanical papers are a sub-segment of the larger printing and writing paper industry.
Coated mechanical paper is also known as coated groundwood paper. These papers are coated on both sides with minerals such as calcium carbonate and china clay.
Coated mechanical paper is the choice of companies to publish marketing collaterals and financial reports such as catalogues, brochures, flyers, leaflets, annual reports, investor presentations, etc. Across the world, rising demand for print advertising and educational books is increasing the demand for coated mechanical papers.
Coated mechanical papers face competition from “uncoated” and polished supercalendered papers which acts as a restraint to the growth of the market.
Based on type, the global coated mechanical paper market can be classified into MWC (Medium Weight Coated), LWC (Light Weight Coated), and MFC (Machine Finished Coated). Based on finishing, the market can be divided into glossy finish, silk finish, and matte finish. In terms of end-users, the market is segmented into books, brochures, catalogs, magazines, etc. Offset printing and rotogravure printing also use coated mechanical papers. Medium weight coated (MWC) papers are glossy, smooth, and have an excellent even surface. Light weight coated (LWC) papers are glossy and bright.
Geographically, the global coated mechanical paper market can be segregated into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to be a significant market for coated mechanical paper during the forecast period. The U.S. is expected to lead the market in North America from 2018 to 2026, followed by Canada. Due to low cost of production, manufacturing of coated mechanical papers is shifting from the U.S. to Asia pacific countries. For example, as per American Forest & Paper Association, the shipment (export) of coated mechanical paper in the U.S. decreased over 9.0-11.0% on a year-on-year basis for eighth time in 2018, but import of coated mechanical paper increased by 5-8% on year-over-year in September 2018.
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Europe is expected to be a smaller market than North America. Germany, the U.K. and France are significant markets in Europe. In 2017, according to Confederation of European Paper Industries (CEPI), the total consumption of coated mechanical paper in the European newsprint industry was in the range of 4,300 – 4,400 thousand tons which decreased approximately 5.0% from the 2016 consumption of coated mechanical paper. UPM, Metsä Board, Kotkamills Oy, Burgo Group, Stora Enso, etc. are some significant coated mechanical paper mills operating in Europe.
Asia Pacific is expected to be another dominant coated mechanical paper market in the world. China is expected to be a leading market for coated mechanical paper in the region. Japan, South Korea, and India are other major coated mechanical paper market in Asia Pacific. Middle East & Africa is a significant market for coated mechanical paper, with GCC dominating the coated mechanical paper market in the region. South Africa is a major market for coated mechanical paper in Middle East & Africa. Brazil is expected to a major coated mechanical paper market in South America during the forecast period.
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Major companies operating in the global coated mechanical paper market include UPM, Sappi Limited, Burgo Group Spa, Verso Corporation, Nippon Paper Industries Co., Ltd., Shandong Chenming Paper Holdings Ltd., Stora Enso Oyj, Lecta SA, Catalyst Paper Corporation (in October 2018, Paper Excellence Canada (PEC) announced plans to acquire Catalyst Paper Corporation), and Resolute Forest Products Inc.
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