In Jan. – May 2015, living paper farewells continuously declining trend. Only paper export is stalled, but the price has not obvious adjustment. While paper in other regions have increased 2- 3 times by 200 – 300 Yuan. The resons are as follows:

Firstly, during Spring Festival paper enterprises sell smoothly. Thus after Spring Festival, most of paper industry has not inventory.

Secondly, the supply volume decreased, at the end of March the largest paper factory Huamei Paper Industry in Guangxi stopped producing; about tens of paper factories shut down in Dongguan; Due to environment protection demands most of factories in Shandong, Jiangxi and Fujian also shut down. Thus living paper output declines largely.

Finally, the most important reason is raw material price rising. Based on data, the average import coniferous pulp price has increased to 4825 Yuan/ton from 4718 Yuan/ton in January with growth of 107 Yuan/ton; hardwood pulp price has increased to 4554 Yuan/ton from 4180 Yuan/ton in January with growth pf 374 Yuan/ton. If cacluated on 1.05 tons pulp produces 1 ton paper, and 3:7 ration between coniferous pulp and hardwood pulp, from January 2015 1 ton living paper’s cost increased by 309 Yuan. (Cost rising only applies to small enterprises)

However after May Day, the shipment pressure of paper enterprises increased, most of downstream clients can buy goods without queuing. In addition, some selling well products were not lacking at all. Some enterprises declined the factory price slightly. No matter whether we are willing to believe or not a series of phenomena tell us that living paper paper market has entered the off-season.

Recently most of paper enterprises’ shipment pressure run up. Industry insiders said that influenced by high price of pulp, paper industry’s factory price is hard to maintain their operation.

In short – term run, paper price will decline steadily. The main reason was that from the beginning of 2015 pulp price increased largely. However in long term run, in September most of small paper factories in Baoding had stopped producing. Thus it is predicted that overdemands condition will appear again, and paper price will also increase. (From China Paper Industry Network)


















From “China Wood Market Monthly Report”