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China Paper Shortage Or Drive Global Paper Mill Prices
Hangzhou Gerson Paper Co.,Ltd | Updated: Jan 10, 2017

China paper shortage or drive global paper mill prices


In 2017 the Chinese market, the base paper price (denominated in RMB) will be subject to exchange rate depreciation, environmental trends and inflation around, the overall trend to keep rising. From 2016 the price of Chinese paper pulp in the international pulp down situation is still soaring, do not rule out the possibility of another skyrocketing.

From the end of September 2016, a massive paper shortage swept the Divine Land. The reasons for the shortage of paper, many people think that is cut-off limit, panic buying, import waste paper quota and other factors. In fact, the truth behind the far more than that.

The Reasons of Paper Waste

Xiao Bian through detailed information to find, and finally found that a pulp buyers in China and foreign pulp manufacturers running between, may be caused by 2016 China paper shortage of the main reasons.

This matter from March this year, talking about, in China's white card, cattle cardboard manufacturers have a substantial increase in paper prices, the foreign pulp manufacturers from the June attempt to revisit the 2008 China 4 trillion stimulus after the international pulp soaring The dream of the Chinese market for all types of pulp to implement a new round of price increases action. But was China's paper mills and traders of the "boycott", resulting in orders from the Chinese market plummeted, making some foreign pulp manufacturers adhere to the mid-July, had to cut the pulp market prices to the Chinese market .

Although the International Pulp Company in mid-July will be sold to the Chinese market, eucalyptus pulp prices have dropped significantly, but by the G20 summit, the impact of limited production, Chinese paper mills and traders wait and see atmosphere. Making China's imports of pulp fell significantly in the region, in addition, the Fed's rate hike expectations, taking into account the RMB against the US dollar may be lower, the Chinese paper pulp procurement operations more cautious.

At the same time, in another battlefield, a purchase of imported waste paper war also started. In the US waste paper recycling market, imports of paper to China by the three Chinese traders monopoly. In order to prevent the US recycling companies to bid up paper prices, to take a consistent procurement action, therefore, in late October - early December, imports of waste paper to form a gap period.

As a result of two-phase superposition, leading to China's paper-making enterprises in late October when the emergence of zero inventory and paperless production dilemma, which is likely to be the main reason for the past two months of Chinese paper shortage.

China paper shortage driven global mill prices

Into October, the Chinese paper market prices surging tide, the US and European pulp and paper prices take advantage of rebellion, but also led the global paper industry generally rose.

Smurfit Kappa, the world's leading producer of wrapping paper, announced that it has increased the price of its WLC products by £ 60 per tonne, effective from 1 December. January 2017, the world's leading producer of recycled paper - France Arjowiggins GraphicGraphic (Arnold Wiggins), will improve the company's production of coated and non-coated, recycled and non-ground wood pulp paper prices, price increases Amplitude of 10%.

International Paper, the world's largest papermaker, announced a 5% price hike for all non-coated woodfree products. Suzano Pulp & Paper, Brazil's leading producer of pulp and paper, also announced a 5% price hike. Navigator, Portugal, announced a price increase of 6% for its uncoated woodfree paper on December 15. Fedrigoni UK announced that prices for most products will rise 5% -8% from 21 November.

Finland UPM (UPM), announced plans to increase the cost of coated and non-coated high-grade paper about 10%, Stora Enso (Stora Enso) announced its coated and uncoated wood pulp products without price About 10%, plan from January 2, 2017 began to implement.

In addition, the Swedish Arctic Paper mill announced price increases of 10%. Spain Lecta company announced a 10% price increase. Italy 's Burgo Group' s UK branch announced a 10% price increase, January 3, 2017 onwards. Sappi (Europe) has announced a 10% price hike.

Global Paper Market Forecast

In 2017, the world pulp market supply and demand situation? According to Xiao Bian analysis, due to the emergence of a large number of new capacity in 2017, the world's pulp market there is a risk of excess.

(APP) OKI pulp mill two 1.4 million tons of pulp production capacity will be phased production

According to the news, the world's largest under construction pulp plant in Indonesia Kam Group (APP) OKI pulp mill two 1.4 million tons capacity pulp line will be put into operation in stages, respectively, in late October 2016 and 12 at the end of production. Two pulp lines are to acacia wood as the raw material of bleached wood pulp production line, put into operation is expected to have 2 million tons per year Acacia wood commercial pulp market.

Stora Enso Beihai plant 200,000 tons of pulp production line put into operation

December 9, 2016, renewable materials company Stora Enso Group in Guangxi, China held a grand North Sea bleaching plant hot chemical mechanical pulp production line (BCTMP) the official production ceremony. It is reported that the production line with an annual capacity of up to 20 million tons.

Sweden Sodra Varo pulp pulp pulp plant expansion

Sweden Vod pulp mill Sodra company annual production capacity of 425,000 tons of bleached pulp production line, expansion to 700,000 tons / year scale, has been put into operation in late July. This means that the world's new bleached pulp production capacity re-release, but also very eye-catching.

As China is the world's largest importer of pulp and paper, China's demand for pulp is likely to decline significantly in 2017 due to the low season and weak economic conditions. As a result, a serious oversupply in the world pulp market will be unavoidable.

In Xiaobian view, the Chinese market in 2017 the price of paper (in RMB denominated) will be subject to exchange rate depreciation, environmental trends and inflation around the overall trend to keep rising. From 2016 Chinese base paper prices in the international pulp prices fell significantly in the situation is still soaring, do not rule out the possibility of another skyrocketing


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