DUBLIN, Ireland--(Business Wire)--Research and Markets
(http://www.researchandmarkets.com/reports/c81225) has announced the
addition of China Papermaking Industry Report, 2007-2008 to their
offering.
The papermaking industry is still acknowledged as a sunrise
industry in China and has massive potential market. Since 2007, with
the continuous and rapid increase of the macro economy, the demand for
paper and the paper price both show a continuous rise and the demand
in Shandong paper market also increases steadily. From January to
August of 2007, the Chinese papermaking industry achieved sales
revenue of RMB 380.35 billion, up 36.20% year on year; the increase
rate of the sales profit kept above 30% and the profitability of the
industry increased sharply.
1. Advantages: National Development and Reform Commission issued
"the Development Policy of Paper Making Industry" so as to build fair
market order and a favorable development environment as well as solve
the problems in the development and guide the healthy development of
the industry. The policy made detailed requirements about production
capacity, environment protection, industrial layout, fiber raw
materials as well as entry barriers. This policy helps to increase the
market concentration and make the paper making industry to realize
sustainable development. Doubtless, it is a favorable factor to the
paper making industry.
2. Disadvantages: With the fast growth on the export of the paper
products of China, the export competitiveness of the paper industry
frequently faces a threat from international trade protectionism. In
2007, China advocates and attaches great importance to environmental
protection once again and shuts down those environmentally unqualified
enterprises. But the paper industry cannot solve the awkward situation
immediately. Currently, the pollution problems of large enterprises
are almost solved. However, the serious pollution is usually caused by
some small paper mills. The large number of medium and small
enterprises will face stricter macro control and punishment. The
enterprises are facing a large industrial integration.
Because of the price raise of paper pulp, the downstream is
affected. The production capacity is gradually digested under the
precondition of the demand increasing slowly. In the future, the price
of paper products is expected to have an upturn and the industry
prosperity will rebound. Between January and September of 2007, the
output of the paper pulp was 15.79 million tons, down 15% year on
year; 1562 small paper pulp enterprises were under rectification or
have been closed. It is expected that the closed enterprises would be
nearly 1700 in the whole year of 2007. Consequently, the supply of
paper pulp is in short supply at home and abroad. This must lead to
the further price raise of the paper pulp and it would cause a price
raise in the downstream definitely.
Under the precondition of the basic balance of the supply and
demand of the paper products, the expanded production capacity has
gradually been absorbed and it is estimated that the price of the
paper products will rise in both 2007 and 2008.
Currently, there are 3406 export companies involved in cardboard
and paper in China, 60.7% export value concentrates on the top 10
enterprises on export value. Although the current advantage of the
foreign-funded enterprises is not obvious yet, their ratio in the
capital structure of China paper making industry has already surpassed
the alarm line. Furthermore, their market share has already occupied
one third of China's total. The market share of many domestic small
and medium enterprises has been grabbed. The industrial development
encounters crisis.
Comprehensively, the paper making industry is the third biggest
foreign exchange use industry, so it will benefit a lot from the
long-term RMB appreciation in the future. The RMB appreciation can cut
the cost of the raw materials of the paper making industry and
increase the industrial profitability. Besides, as the paper making
equipment, especially the high-grade paper production facility, is
almost imported from abroad, the RMB appreciation can reduce the cost
of papermaking equipment, consequently, decrease the production cost
and financial expenses and increase the profitability of the
enterprises. With the increasing demand for high-grade paper products,
the production structure and the raw material structure in paper
making industry have some changes accordingly and the proportions of
the waste paper pulp and wood pulp to the raw materials increase
higher and higher.
In 2008, the price of raw materials will show different trends.
The wood pulp price will fall because of the releasing of
newly-increased production capacity; the waste paper price will rise
because the growth as the supply slows down but the demand is still
strong; most of the paper markets would have an upturn; the market of
culture paper and ivory board is still bright; though the supply for
newsprint and copperplate paper exceeds the demand, the situation will
ease a little; as for the box board base paper, due to the releasing
of the production capacity, its supply exceeds its demand and a new
round of industry shuffling probably will begin.
We deem that, under the current economic background, the paper
making industry will become a rapidly growing industry. The investors
are suggested to pay much attention to those leading enterprises which
have the project of "forest & paper integration", good market
performance and the expansion of production capacity.
For more information visit
http://www.researchandmarkets.com/reports/c81225
Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Copyright Business Wire 2008
