Analysis of China's paper industry in 2019

Analysis of China's paper industry in 2019

release date: Source: Chinese paper author: summer

affected by factors such as China's economic slowdown and Sino US trade frictions, China's paper industry entered a severe winter in 2019. According to the data of the National Bureau of statistics, by the end of September 2019, there were 6641 papermaking and paper products enterprises in China, a year-on-year decrease of 21. Among them, there were 1300 loss making enterprises, with a year-on-year increase of 13.4%; The loss was 8.11 billion, an increase of 35.2% year-on-year

at the beginning of 2018, the Ministry of environmental protection and the General Administration of quality inspection jointly issued the "environmental protection control standard for the import of solid waste that can be used as raw materials", and the new standard will be implemented from March 1, 2018. The proportion of other inclusions in imported waste paper is determined to be 0.5%, which is significantly lower than the previous standard of 1.5%, which fully shows the government's attitude of strictly controlling the import quality of foreign waste paper. Affected by this, China's waste paper import fell significantly in 2018, with the annual actual import of 17.03 million tons, a year-on-year decrease of 33.8%

on November 5, China's solid waste chemicals management released the list of the 14th batch of applications for import restrictions recommended for approval. The total amount of approved imports of various wastes was 67250 tons, including 42370 tons of waste paper

the above figure shows the approved import of China's first 14 batches of waste paper in 2019, which requires the material engineers of vehicle manufacturers and parts suppliers. The total approved import of the first 14 batches of waste paper is 10.918 million tons. Compared with the approved import volume of 26 batches and 18.701 million tons in 2018, both the approved batch and the largest composite aircraft import volume so far in 2019 showed a significant downward trend

due to export entrainment, paper products export, book precipitation and other factors, the actual recovery rate of domestic waste has reached more than 85%, and the actual recovery rate of OCC has exceeded 90%. The domestic waste recovery rate does not have room to be significantly improved. Therefore, the shortage of raw materials has seriously restricted the development of China's paper industry

in order to cope with the shortage of raw materials, domestic leading paper enterprises have deployed overseas and invested in new production capacity in North America and Southeast Asia. In North America, Chinese paper mills are expected to add 275000 tons of natural wood pulp and 1.35 million tons of recycled pulp; In Southeast Asia, Chinese paper mills are expected to add 3.15 million tons of box board corrugated paper and 2.43 million tons of recycled pulp

the following table shows the main capacity distribution of domestic paper enterprises in North America and Southeast Asia. It can be seen that the new production capacity of domestic paper enterprises in North America is mainly recycled pulp, which is due to the large output of waste paper in North America and the low recovery cost. By importing recycled pulp, we can make up for the shortage of papermaking raw materials in China to a certain extent. In addition, the strength of American waste fiber is higher, and the burst resistance and ring crush strength of paper products produced from American waste are stronger than that of finished paper produced from domestic waste. Importing recycled pulp from North America can greatly reduce the possible problems of finished paper due to the poor quality of raw materials

(Chinese paper finishing)

Liwen, Jingxing, Taiyang and other enterprises turn their eyes to Southeast Asia. This is because the waste paper import restriction policy in Southeast Asian countries and regions is relatively loose, and the labor cost is also lower than the domestic level. Therefore, these enterprises choose to build factories there, adding waste paper to the factory waste pulp or finished paper, and then importing it to China, so as to achieve the purpose of reducing costs

in addition, paper enterprises in other countries and regions have also begun to deploy new production capacity in Southeast Asia. Waste paper from all over the world is transported to Southeast Asia. These waste paper will be used to produce recycled pulp or processed into finished paper together with customers, and then transported to China or other regions. Southeast Asia may become the largest import region of recycled pulp and finished paper in China

(Chinese paper finishing)

according to the customs data, China imported 294000 tons of recycled pulp in 2018, and the import volume of recycled pulp in 2019 was 657000 tons, an increase of 123% over the previous year. It is expected that the import volume of recycled pulp in 2019 will be about 1million tons. With the continuous improvement of the import standard of recycled pulp, the import volume of recycled pulp in China may continue to grow in the future