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Newsprint Shortage Basically Eliminate The Market Tends To Stabilize
Dec 19, 2018

CPP114 - December 11, 2018 annual conference on China's newspaper supply was held in suining, sichuan province. According to data released by the China press association, the shortage of newsprint in the first half of this year has been basically eliminated. This year, the supply and demand of newsprint in China are basically balanced and the newsprint market tends to be stable.

 

The reporter understands, this year domestic newsprint output is about 1336 thousand tons, compared with the output of last year decrease 164 thousand tons, drop rate is 10.9%. In terms of inventory, the big four newsprint mills had only a small stock at the end of the year. Due to the tight supply of domestic newsprint, foreign newsprint has entered China to seize the market, and the import volume is much higher than that of the same period last year. In order to cope with the "paper shortage", newspapers have chosen to use imported paper. According to statistics, newsprint imports this year are about 350,000 tons.

 

According to the survey data of 103 newspapers with large paper consumption in 2017 and 2018 conducted by China press association recently, 22 newspapers with large paper consumption increased this year compared with last year, accounting for 21.4%, 75 newspapers with a decrease, accounting for 72.8%, among which 6 were flat, accounting for 5.8%. The total paper consumption of these 103 newspapers was 1.053 million tons in 2017, 985 million tons in 2018, 68,000 tons less than that of 2017, down 6.5%. In terms of data, the decline rate of this year is the same as that of last year. Compared with the double-digit decline in previous years, the decline rate in these two years has been relatively small. The amount of paper used by Chinese newspapers has entered a small and slow decline trend.

 

According to the data, the total supply of domestic newsprint and imported newsprint this year is about 1.686 million tons, and the total demand is about 1.661 million tons, basically balanced between supply and demand. In the first half of the year, the reason for the tight supply situation, in addition to the lack of raw materials and other domestic and foreign factors, but also because the newspaper worry about the emergence of "paper shortage", eager to buy newsprint to increase inventory, which jointly caused the newsprint market supply is very tight. In the second half of the year, due to the elimination of various unfavorable factors and the resumption of normal production in hebei huatai and guangdong huatai, some newspapers no longer purchased newsprint due to sufficient stock. At the end of 2018, the average stock of national newspaper newsprint was 1.5 months.

 

For newsprint market in 2019, the direction of the secretary general of the China newspaper association Hu Huaifu said: "the newsprint market demand will continue to reduce, the existing four news paper factory, we will continue to pursue so as to protect the normal production and raw materials, under the condition of newsprint market situation remained stable, newsprint supply tense situation will ease further. But there are still many uncertainties in the newsprint market, and the newspaper industry should pay close attention to market changes.

 

According to the forecast data of China press association, the total supply of domestic newsprint will be about 1.57 million tons next year, and the total demand of the national newspaper industry will be about 1.58 million tons.