The post Sample of Research Report on Papermaking Industry of China, 2018-2022 first appeared on CRI Report.

In recent years, with the development of Chinese economy, the papermaking industry has continued to grow. In 2000, the total output of paper and paperboard was about 30.5 million tons and increased to 125.42 million tons in 2017, with the CAGR up to 8.7% from 2000 to 2017.

According to the analysis of CRI, the sub-sectors of the papermaking industry present diverse prospects. With the rise of internet media, especially the popularity of mobile Internet apps, traditional printing media like newspapers, magazines and books have gradually declined in circulation, leading the demand for and production of newspapers to constantly drop.

For another, the improvement in the living standards of Chinese residents has driven up the production of household paper. Also, the output of packaging paper is lifted by the development of logistics, especially the increase in express delivery, which is fostered by the growth of e-commerce.

Report on Imported Recycled Paper in China 2020-2024

The analysis of CRI shows that in recent years, wood pulp and waste pulp has taken up bigger shares in the raw materials for papermaking while non-wood pulp has been on the decline. Waste paper plays an increasingly important role in the development of the papermaking industry of China. The import volume of waste paper increased from 2.516 million tons in 1999 to 29.28 million tons in 2015 with the CAGR reaching 16.6% from 1999 to 2015.

From 2016 to 2017, the amount of imported waste paper decreased due to the stricter policies of the government. Since Mar. 1st, 2018, Provision on Imported Waster Paper for Environmental Protection has taken effect. The new standards on the impurity rate of the imported paper have also been carried out, decreasing from 1.5% to 0.5%.

The bar raised by the new standards poses great impacts on the amount and price of the imported waste paper. The new standard will lift the cost of sorting waste paper and thus affect its sales in China, the largest consumer in the world.

In terms of the approval of quotas for waste paper imports, many batches of small amount are adopted. Large enterprises like Panlong Paper, Liwen Paper, and Shanying Paper gain greater advantages to secure the quotas. In 2017, the top 5 papermaking enterprises obtained 62.6% of the quota. In 2018, the quota of large enterprises is expected to increase. Due to the decrease in imported waste paper, the price in the Chinese market will be lifted, which consequently drives up the cost of papermaking.

CRI report also indicates that Chinese papermaking enterprises are in great quantities in low market concentration. By the end of 2017, there were about 2,700 enterprises making papers and paper products with more than CNY 20 million in annual sales. The average annual capacity of those enterprises was less than 50,000 tons, far lagging behind the international level. In 2017, the number of enterprises which made paper of more than 1 million tons was less than 30.

From the perspective of the regional distribution of paper-making enterprises in 2017, the output of paper and paperboard in Guangdong was 21.7774 million tons, ranking first in China, and the output in Shandong was 21.7750 million tons, ranking second. The total output of paper and paperboard in the two provinces accounted for one third in the country.

Now it has been the trend for papermakers to make investment or merger across regions, paring down the regionality. For example, Chenming Paper and Huatai Paper established factories in Shandong, Guangdong, Hubei, and Anhui. Nine Dragons Paper and Lee & Paper funded factories in Guangdong, Jiangsu, Tianjin, Chongqing, Fujian, and Sichuan. In another case, Hengan Group and Vinda located their workshops in different places across the country.

Currently, the export volume of paper and paperboard only accounts for less than 5% of the total output. In order to protect environment as well as satisfy domestic demands, the Chinese government does not encourage the export of paper and paperboard. Therefore, governments at all levels rarely publish supportive policies for the papermaking industry.

Chinese papermaking enterprises lack their own forestry property and mainly import raw materials for papermaking. The short supply of raw materials greatly affects the development of the papermaking industry as it rapidly grows. Also, the government policies and other extrinsic factors impact the import of raw materials.

CRI predicates that, with the development of Chinese economy and the rising living standards, the demand for household paper is growing. The development of e-commerce has promoted the increase in the express delivery, further driving the demand for packaging paper. It is expected that from 2018 to 2022, the overall demand for paper products in the Chinese market will maintain an annual growth rate of 3% or more, and the papermaking industry, to a certain degree, can bring about some investment opportunities.

Selling points:

Policy environment of the papermaking in China

Supply and demand in papermaking industry

Market competition in papermaking industry of China

Demand of the Chinese market for imported waste paper and other raw materials

Quota system of import waste paper by the Chinese government

Key enterprises in paper industry and their operation status

Price trend of raw materials in the papermaking industry of China

Driving forces and market opportunities in the papermaking industry

Threats and challenges faced by the papermaking industry

Forecast on development of China papermaking industry, 2018- 2022

A-share Listed Papermaking Companies – Profiles and Financial Data

The post Research Report on Papermaking Industry of China, 2018-2022 first appeared on CRI Report.

With the development of Chinese economy, China papermaking industry recently maintained the momentum of rapid growth. The total output volume of paper and paperboard in China increased from 30.5 million tons in 2000 to 107.1 million tons in 2015 with CAGR reaching 8.7%.

Different sub-industries of China papermaking industry differ in degree of prosperity. With the rise of Internet in China, traditional print media such as newspaper, magazines and board books were on the wane with declining circulation, which led to the descending output volume of newsprint in China. With the increasing living standard of Chinese residents, the output volume of household paper keeps growing accordingly. The development of e-commerce in China brings about the increase of expressage, which promotes the increasing output volume of liner board and packaging paper in China.

It is difficult for the insufficient supply of fiber resources in China papermaking industry to satisfy the requirements of production capacity expansion. That is to say, fiber materials become the bottleneck restricting the development of China paper industry. In 2015, the consumption volume of wood pulp accounted for 28% of the total raw material consumption volume, and waste pulp accounted for 65%. The non-wood pulp only accounted for 7%. In recent years, the proportion of pulp and waste pulp kept increasing, while the proportion of non-wood pulp raw materials continued falling.

Waste paper plays an increasingly important role in supporting the development of China papermaking industry. The import volume of waste paper in China increased from 2.516 million tons in 1999 to 29.28 million tons in 2015 with CAGR reaching 16.6%. Supply and demand determine the price. With the rapid growth of demand, the price of imported waste paper also enjoyed a sharp increase. In 1999, the price of imported waste paper was 97 USD/ton, and it reached 180.3 USD/ton in 2015. China imported large quantities of waste paper and pulp to solve the shortage of raw materials. However, it led to over dependence on the imported raw materials of papermaking industry. Up to 2015, the imported pulp and the waste pulp converted by imported waste paper accounted for over 40% of the total raw materials.

Presently, there are many papermaking enterprises in China with low market concentration rate. Up to the end of 2015, there were 2,800 papermaking and paper product enterprises whose annual sales revenue exceeded CNY 20 million in China. On average, the annual output volume of one papermaking enterprise was less than 40,000 tons, and there was a large gap between China and the average level of international papermaking enterprises in developed countries. In 2015, there were less than 20 papermaking enterprises whose annual output volume exceeded 1 million tons in China.

The export volume of paper in China accounts for less than 3% of the total domestic output volume. In addition, in order to protect the environment and especially to ensure domestic supply, the export of paper is not encouraged by Chinese government. Unlike other industries, there are neither tax rebates for paper export nor subsidies for the paper industry in China.

Most of the world’s large-scale paper manufacturers accomplished the integration of forest, pulp and paper. However, most paper manufacturers in China failed to form their own forest-paper industry and thus high quality paper fiber depends greatly on import. The external impact on costs of raw materials directly led to unstable operation performance. Insufficient supply of fiber raw materials seriously hindered the development of paper industry in China. In the long run, the insufficient raw materials of papermaking in China will be a critical problem in the development of papermaking industry.

With the development of Chinese economy and e-commerce industry as well as the enhancement of residential living standard, the overall demand for paper products will keep the annual growth rate of 2% or more. Therefore, there exists certain investment opportunities in China papermaking industry.

Through this report, the readers can acquire the following information:

-Development Environment Faced by China Papermaking Industry

-Supply and Demand of China Papermaking Industry, 2011-2016

-Market Competition of China Papermaking Industry

-Import and Export Status of Paper Products in China, 2011-2016

-Key Enterprises in China Paper Industry and Their Operation Status

-Development Status of Forestry-Pulp-Paper Integration in China

-Price Trend of Raw Materials in China Papermaking Industry

-Major Driving Forces and Market Opportunities in China Papermaking Industry

-Threats and Challenges Faced by China Papermaking Industry

-Prediction on the Development of China Papermaking Industry, 2017-2021

The post Research Report on China Papermaking Industry, 2017-2021 first appeared on CRI Report.