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CRI: Increasing Degree Of Dependence On Foreign Trade In China Paper Industry, 2014

Related report: Research Report on China Paper Industry, 2014-2018

According to statistics of paper industry in 2013, output volume of paper products exhibited overall decline in China. Output volume of wrapping paper declined by 0.78% while that of white paperboard decreased by 2.16%. Output volume of uncoated writing and printing paper declined by 1.71% while that of newsprint decreased by 5.26%. Output volume of art paper and liner board declined by 1.44% and 2.36% respectively while that of corrugated mediums decreased by 0.25%. However, output volume of household paper, "the last piece of cake" in paper industry, increased by 1.92% while that of special paper strikingly increased by 4.55%.

Output volume of paper pulp also declined in China in 2013. According to statistics, the volume declined by 2.75% YOY in China in 2013 while that of wood pulp increased by 8.89%, which indicated the profound impact of domestic paper pulp products on spot market of paper pulp and the transfer of production capacity from paper pulp to wood pulp industry. Output volume of wood pulp increased from 2.38 million tons in 2004 to 8.82 million tons by 270% in China. Degree of dependence on foreign trade is high in Chinese paper pulp industry. Import volume of paper pulp increased to 16.85 million tons by 2.31% in 2013 while that of waste paper declined to 29.24 million tons. According to statistics from the China Paper Association, import volume of paper pulp (with waste paper converted and dissolving pulp excluded) accounted for 42.46% of total consumption of paper pulp in China. Domestic paper pulp market depends heavily on international market.

Domestic trading volume of paper pulp declined as the market exhibited downward trend in 2014. Output volume of paper pulp decreased again in the first quarter while the import volume increased, representing high dependency degree of the paper pulp market on foreign trade. Exchange rate of CNY to USD declined in 2014. Increase in cost of import for domestic market may influent import of paper pulp in China.

In 2013, decrease in output volume of paper and paper pulp epitomized the dilemma of paper industry in China while paper manufacturers sought for changes. Excess capacity may deteriorate as the elimination of outdated production capacity lags behind increasing production capacity of paper in China. However, export volumes of various paper products increase geometrically in China, which stimulate the paper industry.

Related report: Research Report on China Paper Industry, 2014-2018