June 2018 – CRI Report

Research Report on China’s Waste Paper Import, 2018-2022

admin — Fri, 17 Aug 2018 09:07:25 +0000

Description

With the development of China’s economy, the consumption of paper and paperboards has continued to increase, which has promoted the production. China has become the world’s largest producer of paper and paperboards for many years. In 2017, the production volume of paper and paperboards reached 125.42 million tons with an increase of 3.1% YOY. The CAGR was up to 4.9% from 2007 to 2017.

According to CRI’s analysis, waste pulp is the most important raw material for the papermaking industry and plays a crucial role. The demand for waste pulp in the Chinese market is rising, but the recycling volume and the paper quality cannot meet the needs of the industry. Thus, every year China needs to import large amounts of waste paper. Now it is the world’s largest importer of waste paper, with the import volume more than 60% in the global trade.

When importing waste paper, enterprises must apply for import quotas from the Ministry of Environmental Protection and be allowed to import only after the approval. In 2017, a total of 28.1076 million tons of waste paper import quota were approved. Due to illegal activities permits of some companies were withdrawn. In 2017, the import volume of waste paper reached 25.72 million tons, decreasing by 9.8% YOY. The import value amounted to USD 21.22 billion, with an increase of 22.8% YOY. The average price of imported waste paper in 2017 reached USD 824.9/ton, increasing by 36.1% YOY.

In 2017, China’s largest sources of imported waste paper were the United States, Europe, Japan and Canada. The import volume is closely related to international trade disputes. In the case of disputes with other countries, China Customs would make more restrictive measures to reduce the import volume.

According to CRI’s analysis, the Chinese government has enforced stricter regulations on the import of waste paper to promote the standardized development of the waste paper industry chain. From Mar. 1, 2018, Regulations on the Environmental Protection of Imported Waste Paper was implemented, which stipulated that the production capacity of enterprises applying for import permits must reach 50,000 tons/year, and that the impurity rate of waste paper was adjusted from 1.5% to 0.5%. The import quota for waste paper officially approved is preferentially given to leading enterprises. For example, the three companies of Nine Dragons Paper Co., Ltd., Lee & Man Paper Manufacturing Limited and Shanying Paper account for more than 50% of the total quota, while some small and medium-sized companies cannot even obtain quotas. With the better quality of imported waste paper at lower prices, the large-scale papermaking enterprises will grow more competitive and the industrial concentration is expected to increase.

According to the CRI, over 30% of the waste paper needed by China’s papermaking industry come from the overseas. Affected by the new regulations, the total amount of imported waste paper in 2018 will be 10% to 20% lower than that in 2017. With the falling import volume and stricter standards, the price of waste paper in the Chinese market may further increase, hence driving up the price of paper and paperboards.

CRI expects that the paper and paperboard output will continue to increase from 2018 to 2022, and the demand for waste paper will also rise. Since the domestic waste paper cannot meet the demand of the papermaking industry, the only solution is to increase the imports. From 2019, the import volume of waste paper will see a rise.

Key topics:

Restrictive policies of the Chinese government on imported waste paper
Analysis on the import quota system
Overview of the papermaking industry and the demand for imported waste paper
Overview of China’s imported waste paper from 2013 to 2017
Major Chinese companies of importing waste paper
Comparison of imported and domestic waste paper
Price trend of imported waste paper
Forecast on import volume of waste paper from 2018 to 2022

The post Research Report on China’s Waste Paper Import, 2018-2022 first appeared on CRI Report.

Research Report on China’s Photovoltaic Industry, 2018-2022

admin — Fri, 17 Aug 2018 09:07:14 +0000

Description
In 2017, the newly installed capacity of the global PV market reached 102 GW, with an increase of over 37% over the same period of last year, and the cumulative PV capacity reached 405 GW. China’s newly installed capacity was 53 GW, increasing by over 53.6% YOY, ranking first in the world for five consecutive years. The cumulative installed capacity of China reached 130 GW, securing the first in the world for three years in a row. In 2017, China exported approximately 37.9 GW of photovoltaic modules, with an increase of 77.9% YOY. Its PV products are increasing in exports to emerging markets such as India and Brazil.
In recent years, the growth engine of the Chinese PV market has gradually shifted from exports to both domestic and export markets. In 2017, the market scale of photovoltaic power generation enlarged rapidly. The newly installed capacity registered 53.06 million kilowatts, which covered 33.62 million kilowatts of photovoltaic power stations, with an increase of 11% YOY, and 19.44 million kilowatts of distributed photovoltaics, increasing by 3.7 times YOY. This has become the highlight of the development of the photovoltaic market last year.
According to CRI’s analysis, the rapid growth of China’s photovoltaic power generation in 2017 directly drove the development of each sector along the photovoltaic industry chain. In the same year, the polysilicon production was 242,000 tons, with an increase of 24.7% YOY; the wafer production was 87 GW, with an increment of 39% YOY; the battery output reached 68 GW, growing by 33.3% YOY; the solar modules were produced of 76 GW, up by 43.3% YOY; the output of inverters was 62 GW, with an increase of 55% over the same period of last year. China’s production scale of different joints along the PV industry chain all exceeded 50% in the world, maintaining the first place. The great development of the photovoltaic industry has also promoted the technological advancement, which has reduced the production costs and electricity costs.
With the advancement of technology and scale economies, the production cost of Chinese leading polysilicon companies in 2017 fell to CNY 60,000/ton, the production cost of modules dropped to CNY 2 per watt or less, the investment cost of photovoltaic power generation systems dropped to CNY 5/watt and the cost of power generation decreased to CNY 0.5-0.7 per kWh.
Benefited from the expansion of the market size, the increment of company’s shipment volume and the reduction in the production costs, in 2017, Chinese PV companies made remarkable progresses in profitability.
The development of the photovoltaic industry is affected by multiple factors such as Chinese government policies, international and domestic market demands and international trade barriers. In recent years, the Chinese government has given incentives to the PV power plants including financial subsidies and preferential on-grid tariffs. Because of these policies, photovoltaic power plants attracted large amounts of capital and were built in a great quantity. In the light of the overheat in the photovoltaic industry, the government has also issued some measures to control excess production capacity, mainly reducing financial subsidies.
It is expected that during 2018 to 2022, the demand in PV market and PV export volume will both continue to increase. For investors, there are still many opportunities in China’s photovoltaic industry chain.

Topics:
Development environment of China’s photovoltaic industry
Supportive and restrictive policies of the Chinese government on the photovoltaic industry
Analysis on China’s photovoltaic industry chain
Supply and demand analysis on China’s photovoltaic industry
Export analysis of China’s photovoltaic industry
Chinese photovoltaic manufacturers
Chinese photovoltaic market competition
Driving forces and opportunities of the photovoltaic industry from 2018 to 2022
Threats and Challenges of the photovoltaic industry
Prospects of China’s photovoltaic industry from 2018 to 2022

The post Research Report on China’s Photovoltaic Industry, 2018-2022 first appeared on CRI Report.

Research Report on China’s Construction Machinery Industry, 2018-2022

admin — Fri, 17 Aug 2018 09:07:00 +0000

Description
The production and export volume of China’s construction machinery for long rank first in the world.
According to CRI, the development cycle of the industry keeps abreast with the macro-economic development. The industry is directed by the domestic demand, exports and policies, which in general are supportive. For example, in May 2015, the State Council issued Made in China 2025, bringing new opportunities to the construction machinery industry.
The demand in the construction and machinery market is oriented by investments in fixed assets like the real estate and infrastructure. When such investments increase, the demand for construction machinery will follow the step. Among the demand in sub-markets, the real estate accounts for 40%, infrastructure contributes 40%, energy and mining make up 10% and manufacturing takes up 10%.
According to CRI’s analysis, China’s whole sets of construction machinery products are mainly exported to countries and regions excluding Europe, the United States, Japan, Korea and Australia, while the machinery parts are mainly exported to the United States, Japan, Australia and South Korea. In 2017, the export value reached USD 20.1 billion, with an increase of 18.5% YOY, and the trade surplus were USD 16.02 billion. Loaders, excavators and forklifts maintained high growth rate in export value.
According to CRI’s analysis, with the improving strength of China’s construction machinery manufacturing, many Chinese companies have entered the international market through mergers and acquisitions, which enable them to make use of the brand, technology and sales channels of the acquired targets so as to make inroads into the global arena.
By the end of 2017, the urbanization rate in China was about 58.5%, far lagging behind that of developed countries. During 2018-2022, the urbanization rate is expected to increase by at least 1% per year, namely, an increment of 14 million urban population each year. The rise of urbanization will promote the development of the real estate and infrastructure construction, and further drive the demand for construction machines. The price of Chinese machinery products is highly competitive in the international market, so the export value may see great growth. Overall, from 2018 to 2022, the construction machinery industry will continue to develop.

Topic Covered:
Government policies on the construction machinery industry
Supply and demand of China’s construction machinery industry
Analysis on the import and export of China’s construction machinery industry
Construction machinery manufacturers
Competition landscape
Driving Forces and Opportunities of China’s Construction Machinery Industry from 2018 to 2022
Threats and Challenges of China’s Construction Machinery Industry from 2018 to 2022
Prospects of China’s Construction Machinery Industry from 2018 to 2022

The post Research Report on China’s Construction Machinery Industry, 2018-2022 first appeared on CRI Report.