China Paper Pulp Manufacturing Industry Production & Marketing Demand and Investment Forecast Report, 2013-2017
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In 2010, there were 146 paper pulp manufacturing enterprises in China, with a year-on-year increase of 2.10%; the total industrial output value was 32.491 billion Yuan, with a year-on-year increase of 38.00%; the sales revenue was 31.749 billion Yuan, with a year-on-year increase of 40.71%; the total profit was 2.153 billion Yuan.
At present, most domestic paper making enterprises are largely relying on importing paper pulp raw materials. In 2010, the strong earthquake in Chile affected the global 8% pulp supply of commercial goods, and 14% import amount of China’s wood pulp. What’s more, the strike in Finland, the paper pulp manufacturing giant, trigger the dramatically increase of the international paper pulp. The prices of many varieties of pulp have exceeded the highest price for the past 10 years. The paper making enterprises have to reduce their output and tighten the inventory due to the rise of paper pulp price.
It’s predicted this crunch situation will not change in the short term. In the long and middle-term perspective, it’s very possible that the paper pulp price continues to go up. According to estimation, from 2011 to 2015, paper making capacity of domestic investment with intention will be able to reach 46 million tons. It’s predicted there will be 11.3 million tons newly increased demand for broad-leaved wood pulp and 38 million tons newly increased demand for softwood pulp. While during the period of 2010-2015, there will be 140 million tons newly increased demand for broad-leaved wood pulp and 15 million tons newly increased demand for softwood pulp. However, from the 2011 to 2012, there is little newly increased pulp, and most of them will be put into operation after the year of 2013. Therefore, it will be a trend that the price of paper pulp will go up from 2011 to 2012.
The high price of international paper pulp has a subtle effect on the domestic paper making industry. Under the pressure of high cost of imported raw materials, the enterprises with higher proportion of self-made pulp have some advantages in controlling cost, and the medium and small-sized enterprises will get beaten due to their backward capacity. Therefore, if a paper making enterprise hopes to survive from the fierce competition, it can take consideration of investing the paper pulp industry, which will be good for controlling cost and increasing its profit.
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Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Paper Pulp Industry
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