Development status of paper industry in 2017-2018

Paper industry overview

In recent years, the production and sales volume of China's paper industry has continued to grow, but the overall growth rate has declined. In 2017, affected by the macroeconomic stabilization and the rapid development of the logistics industry, the growth rate of paper and paperboard production increased significantly. The industry's operating income and profitability both rebounded, but overall demand growth remained weak. In 2018, the production and consumption of the domestic pulp, paper and paper products industry will continue to 2017, the total output and consumption will continue to increase, and the overall industrial production and operation will continue to be stable.

The status and competition pattern of the paper industry

In 2017, due to factors such as macroeconomic stabilization and the rapid development of the logistics industry, the demand for major paper types increased significantly. However, due to the impact of environmental protection policies, the limited production of enterprises in the paper industry was relatively serious, which made the main papers such as major packaging papers in short supply. The industry boom is getting warmer. From January to August, the domestic paper and board production volume was 65.344 million tons, a year-on-year increase of 6.06%, and the growth rate rebounded significantly.

In 2017, the operating status of China's paper industry showed a clear upward trend. According to survey statistics, by the end of September 2017, the number of companies in the pulp, paper and paper products industry was 6,636, a decrease of 41 compared with the same period last year. From January to September, the industry's accumulated main business income was 1.1767 trillion yuan, a year-on-year increase of 14.28%; the total accumulated profit of the whole industry was 73.931 billion yuan, an increase of 41.06%. In 2018, the profit growth rate of the paper industry dropped significantly. From January to September, the profit growth rate fell to 10.0%.

The development trend of the paper industry 

The price of paper has risen rapidly. Since May 2018, at least 32 paper mills have announced price increases. The prices of various types of paper, such as corrugated paper, whiteboard paper and gray-white paper, have been raised upwards, ranging from 100 yuan to 300 yuan per ton. Yuan does not wait.

In China, whether it is producing carton paper or newsprint, a large amount of waste paper is required as a raw material. However, due to the limited amount of waste paper recovered from domestic sources, many paper mills have long relied on imported paper with lower prices. Since 2018, the demand for domestic pulp and paper double-adhesive paper, coated paper and white cardboard has been sluggish, paper mills are not shipping smoothly, and the willingness to purchase pulp is not strong, and domestic pulp prices are falling.

In 2018, the state will continue to adhere to the tone of progress, implement a proactive and stable fiscal policy, and promote sustained and stable economic development. Many industries that support the paper industry will also stimulate production and consumption. In 2018, the production and consumption of the domestic pulp, paper and paper products industry will continue to 2017, the total output and consumption will continue to increase, and the overall industrial production and operation will continue to be stable. From January to September 2018, the cumulative output of mechanical paper and paperboard was 88.664 million tons, down 1.1% year-on-year.

With supply-side reforms and industrial restructuring, the structural overcapacity of some products will be further improved. With the refinement of environmental protection policies and the adjustment of industrial structure in some regions, some changes in regional structure, product structure and market structure will bring business opportunities and development opportunities to some enterprises, and accelerate the industry reshuffle.

At present, the utilization rate of waste paper has reached a high level in the world, but the recovery rate of waste paper is slower and still at a lower level in the world. Raw materials are still the main bottleneck restricting the development of papermaking in China in the future.