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Foreign Paper Imports Impact On The Domestic Paper Industry?
Jan 04, 2019

China paper and paperboard imports increased from 2014 to 2017. In 2017, China imported 4.75 million tons of paper and paperboard, up 60 percent year-on-year. From January to September 2018, China imported 4.9 million tons of paper and paperboard, up 55.4 percent year-on-year.

 

From the perspective of amount, China's import of paper and paperboard decreased from 2013 to 2016. In 2016, China's import of paper and paperboard was 3.279 billion us dollars, down 2.1% year-on-year. In 2017, China's paper and paperboard imports increased by 44.2% year-on-year to us $4.289 billion from January to September 2018.

 

At present, most of the imported paper and paper products are low-grade wrapping paper and newsprint, etc., but the quality of imported paper and paper products is generally better than domestic paper, and the price is lower than the price of domestic paper products. Foreign paper imports of a substantial increase in the downturn in the market caused further impact.

 

China produced 88.66 million tons of various types of paper from January to September 2018, down 7.2 percent year-on-year, according to the China paper association. The production of paper products reached 42.36 million tons, down 21.6% year on year, among which the output of cartons reached 21.21 million tons, down 28.3% year on year.

 

Carton production declined by 28% from January to September, and the profit of the whole industrial chain decreased by 20%. In the january-september period, industry-wide profits fell 20% from a year earlier. From January to September, the industry's main revenue was 1.0578 trillion yuan, down 10% year-on-year, and its profit was 59.1 billion yuan, down 20% year-on-year.

 

Due to the increasing downward pressure on domestic economy and shrinking demand for packaging paper caused by export trade and other factors, this year's paper and paperboard inventory increased by more than 30% year-on-year, it is expected that the total production and consumption of the papermaking industry will decrease this year. Affected by the gradual tightening of the policy on the import of waste paper and the change of the exchange rate, it will bring unstable factors to the steady development of the production and consumption of papermaking products.

 

The former domestic corrugated paper and cardboard market demand is general, the cost of the downward transfer of greater difficulty, the importer profits will be compressed.

 

With the original produced in the United States corrugated, box board paper imports reduced, will benefit domestic high-end product demand release. Especially for the large-scale paper enterprises, with relatively sufficient raw material supply and advanced production equipment and technology, they will be better at seizing market share and more conducive to the industry concentration.