Research Report of  Chinese Papermaking  Industry Chains, 2009



Research Report of Chinese Papermaking Industry Chains, 2009

Description With the growth rate exceeding 10% for successive years, China has substituted America and been the biggest paper making country in the world. In 2008, the yields of the paper and paperboard in China went beyond 83 million tons. However, with the outbreak of international financial crisis in 2008, Chinese papermaking market was depressed. The prices of the products and raw materials were cut down as well as the profits decline for the papermaking enterprises. Meanwhile, many enterprises all made a full preparation for cutting down the prices. Therefore, December 2008 had been the lowest profit level for Chinese papermaking industry.

Chinese papermaking enterprises are making structural adjustment to expand the sales volumes and guarantee the steady achievement growth by improving the self market shares under the circumstances of the whole recession. Many enterprises cut down their storage by reduction in the yields in the previous period, promotion in low price, cut-down of the yield capacity utility rate and growth of the new uses. It can be said that the storage problem perplex the enterprises had been solved effectively. The statistics showed the supply and demand balance in December 2008.

In the first quarter of 2009, the storage volumes of Chinese papermaking industry had been basically cut down to the normal scope. The storage volumes in the major paper enterprises were reduced obviously. From the present situation, many dealers also hold that the price has been the low level in the short period and the purchase for the storage paper are increased. Meanwhile, the operation rate of the papermaking enterprises is up as well as the link relative ratio up in the sales in the first quarter with the yields and sales balances. With the run-up of the storage raw materials,


Research Report of Chinese Papermaking Industry Chains, 2009

the worst time will be passed. Some statistics showed that after the prices of the major paper varieties reached to the low point, the prices of the white card paper and the bond paper were all increased in January 2009 and other varieties held the line. With the price reduction in the raw materials, the profits of the paper products would be rebounded.

Chinese paper market is comparative sealed, which determines the demands affected by the domestic economy. In the future, the economic growth will focus on the investment driving and the reduction in the unit paper consumption. Under the estimation of the GDP up by 8% and the actual demands for the unit paper consumption down by 40 tons per hundred million Yuan, the expected demands for the paper will be increased by 5.6% in 2009 and probably 9% in 2010, which can fully prove the papermaking industry is in the rising prosperity.

In 2008, the export volumes of Chinese papermaking industry totaled 4 million tons, decreased compared with the 4.61 tons in 2007. Because the exports of Chinese papermaking industry majored in the bond paper with high added value, yet the domestic enterprises have few advantages in the bond paper. Besides, the consumption in the international market was recessed because of the international financial crisis in 2008. So, the export decline in Chinese papermaking industry was a foregone conclusion.

Chinese papermaking industry and paper product industry are characterized as the resource-intensive and capital-intensive. The beneficial regions have the abundant resources and sufficient capitals, the major provinces concentrating in East China and Central and South areas


Research Report of Chinese Papermaking Industry Chains, 2009

involved the papermaking provinces of Shandong, Guangdong, Jiangsu, Henan, Zhejiang and Fujian etc. These regions have been the gathering areas of Chinese papermaking industry and the paper product industry as well as the outstanding enterprises and foreign funded enterprises. For the policies, Chinese government approved Adjustment and Revitalization Plan of Light Industry in February 2009, enhancing the confidences in Chinese papermaking industry.

The biggest highlight of Adjustment and Revitalization Plan of Light Industry is to ease the domestic yield capacity surplus by encouraging the export. The concrete measures conclude improving the export tax rebate properly, recovering the waste paper processing trade, intensifying the replacement of the backward yield capacity and setting up the state and regional product and raw material reserves etc. .

From May 2009, China begins to carry out new environmental standards, including the speed-up of the backward yield capacity replacement. It is predicted the cultural paper industry sparsely distributed will be obviously benefited. The expected paper perspectives will develop along low quality cultural paper, medium and high quality cultural paper and newsprint paper, forming the cultural paper initially breaking through the bottom recession.

For the demands, the demand growth of Chinese paper products is closely related to the gross domestic product, the growth speed keeping the pace with the growth of GDP or higher. At present, the average paper product consumption volumes per capita is only equal to 20% in the developed countries. There is a huge growth space in the future. At present, the paper consumption in China


Research Report of Chinese Papermaking Industry Chains, 2009

is in the increasing period as well as the cultural paper and household paper etc. From medium and long run, China is in the product paper packaging. The annual growth speed of the packing paper will keep at 10%.

The author wrote this report by investigation into Chinese papermaking industry and the enterprises with the purposes of providing some favorable references to the investors who are willing to enter Chinese papermaking industry and the related industries at home and abroad.

More following information can be obtained in this report: - Compositions of Chinese Papermaking Industry Chains - Development Situation of Chinese Papermaking Industry - Development Environment of Chinese Papermaking Industry - Regional Distributions of Chinese Papermaking Industry - Development Situations of the Major Sun-sectors in Chinese Papermaking Industry - Factors affecting the Development of Chinese Papermaking Industry - Influences of International Financial Crisis on Chinese Papermaking Industry - Imports and Exports of Chinese Papermaking Industry - Major Enterprises and Their Operations of Chinese Papermaking Industry - Development Situation of the Forest-Paper Integration in China - Prediction on the Development Trends of Chinese Papermaking Industry

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Research Report of Chinese Papermaking Industry Chains, 2009


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