The packaging paper market in the future will be a kind of situation. Ms Zhang Yin, Chairman of the board of directors of Nine Dragons Paper, said in an interview with the New Yorker five years ago that it is quite prescient: “The market has declined so quickly that people It is impossible to reverse the situation.†“This time it is really different, and both big and small businesses have been affected. In the past, the big waves only washed away the sand and left rocks. Now the storm is so big that even some rocks are washed away.â€
Looking at China's history over the past several years, it always swings from one extreme to the other . After thirty years of material poverty, suddenly we have entered an era of extreme excesses of goods and capacity.
This surplus is more or less present in all walks of life, especially in the packaging paper industry. In 2017, China’s packaging paper output was 64 million tons, accounting for one third of the world’s total. Before the 1980s, there were not many Chinese who had seen wrapping paper except in the northeast of China and a few major cities.
By 2010, with the declining economy in Europe and the United States, China's economic growth rate has begun to drop and the demand for packaging paper has reached a peak. However, because of the excessive increase in production capacity, the supply of packaging paper has been in a state of oversupply, and prices have continued to slump. As a result, the packaging industry experienced a six-year phase-out consolidation and phased out two to three million tons of backward papermaking capacity before it achieved a stable supply and demand. However, prices soared in 2016, the paper industry ushered in a temporary boom, Pandora's box of capacity expansion was once again opened.
According to incomplete statistics, the newly added paper production capacity for 2018 will reach as high as more than 10 million tons, and the situation in Hubei, in particular, is the most exaggerated. The economic output is about one-third of Guangdong's strong inland provinces. The annual demand is less than 3 million tons, but the new paper production capacity is far beyond 10 million tons. In the same period, the total production capacity of boxboard paper declared by the economically booming Southeast Asia and the Middle East was 2.5 million tons.
Today, the Chinese economy has entered a new era of slowdown gear shifting from quantitative growth to quality transformation. The export and domestic demand that drive demand for packaging paper is facing a sharp correction. There is no doubt that the demand for packaging paper in China will decrease significantly in the future. Well, we will not know how many tons will be reduced to a certain amount, but there are several data that are worth referring to. The total economic output of China is far lower than that of the United States, but the total volume of corrugated paper and linerboard in the United States is 43 million tons, which is less than 20 million tons more than China. The population of ASEAN is 700 million, but the problem of packaging paper is less than 3 million tons. If China falls to the ASEAN level, it will only need 6 million tons. However, it is basically certain that it should not be possible to fall to the 100,000-ton level in 1980.
Therefore, in the face of such a severe situation, China's paper industry has created a wave of big price increases, big reshuffling and outward expansion.
The big price increases are obvious to all. The major shuffling is not discussed in this paper, but it will probably be the key expansion of the future of China's packaging paper companies. It is worth thinking deeply.
On May 25, 2018, Nine Dragons Paper announced that its wholly-owned subsidiary, ND Paper LLC, intends to acquire the entire equity interest in the target company Catalyst Paper Operations Inc. from Catalyst Paper Holdings Inc. at a consideration of US$175 million. The target company is incorporated in the state of Delaware and owns and operates two pulp and paper mills, which are located in Rumford, Maine and Biron, Wisconsin, and are engaged in the manufacture and distribution of various wood pulp, paper and paper packaging materials. The two plants together have 520,000 tons of pulp and 900,000 tons of paper production capacity.
Another paper giant, Shanying Paper, came from behind, and the overseas expansion plan was booming. On July 20, 2017, Shanying Paper purchased a 100% stake in Nordic Paper for 1.952 billion yuan. In April 2018, Shanying Paper acquired a majority stake in BorealBioref Ltd., and provided financing for the company's planned investment of 950 million euros in a 400,000-ton pulp mill project in northern Finland.
Recently, Nippon Paper Co., Ltd. has sold Liberal’s equity to the Chinese market with a huge loss. Oji Paper also suspended the second-phase plan in Nantong, and Zhonglong Paper shut down 450,000 tons of packaging paper in Shanghai in one fell swoop. Capacity, choose to increase investment in Vietnam. Looking at the Rongcheng paper industry in China's packaging paper market, its Hubei base has fallen into a state of prolonged production suspension.
Nowadays, many people in China’s packaging paper market are puzzled. Regardless of how the paper mill lowered its demand forecast, the actual demand is still lower than expected. As a result, several major paper mills, including Xiaolong, Liwen, and Jianhui, have had to bring down and down. National waste initiatives.
It can be foreseen that the ebb tide in the Chinese packaging paper market may in turn surprise all the packaging paper industry. The packaging paper market in the future will be what kind of situation. The words of Ms. Zhang Yin, Chairman of the board of directors of Nine Dragons Paper, interviewed by the New Yorker five years ago seemed quite prescient: “The market has slumped so quickly. It is impossible to reverse the situation.†“This time it is really different, and both big and small businesses have been affected. In the past, the big waves only washed away the sand and left rocks. Now the storm is so large that even some rocks are washed away. â€
Looking at China's history over the past several years, it always swings from one extreme to the other . After thirty years of material poverty, suddenly we have entered an era of extreme excesses of goods and capacity.
This surplus is more or less present in all walks of life, especially in the packaging paper industry. In 2017, China’s packaging paper output was 64 million tons, accounting for one third of the world’s total. Before the 1980s, there were not many Chinese who had seen wrapping paper except in the northeast of China and a few major cities.
By 2010, with the declining economy in Europe and the United States, China's economic growth rate has begun to drop and the demand for packaging paper has reached a peak. However, because of the excessive increase in production capacity, the supply of packaging paper has been in a state of oversupply, and prices have continued to slump. As a result, the packaging industry experienced a six-year phase-out consolidation and phased out two to three million tons of backward papermaking capacity before it achieved a stable supply and demand. However, prices soared in 2016, the paper industry ushered in a temporary boom, Pandora's box of capacity expansion was once again opened.
According to incomplete statistics, the newly added paper production capacity for 2018 will reach as high as more than 10 million tons, and the situation in Hubei, in particular, is the most exaggerated. The economic output is about one-third of Guangdong's strong inland provinces. The annual demand is less than 3 million tons, but the new paper production capacity is far beyond 10 million tons. In the same period, the total production capacity of boxboard paper declared by the economically booming Southeast Asia and the Middle East was 2.5 million tons.
Today, the Chinese economy has entered a new era of slowdown gear shifting from quantitative growth to quality transformation. The export and domestic demand that drive demand for packaging paper is facing a sharp correction. There is no doubt that the demand for packaging paper in China will decrease significantly in the future. Well, we will not know how many tons will be reduced to a certain amount, but there are several data that are worth referring to. The total economic output of China is far lower than that of the United States, but the total volume of corrugated paper and linerboard in the United States is 43 million tons, which is less than 20 million tons more than China. The population of ASEAN is 700 million, but the problem of packaging paper is less than 3 million tons. If China falls to the ASEAN level, it will only need 6 million tons. However, it is basically certain that it should not be possible to fall to the 100,000-ton level in 1980.
Therefore, in the face of such a severe situation, China's paper industry has created a wave of big price increases, big reshuffling and outward expansion.
The big price increases are obvious to all. The major shuffling is not discussed in this paper, but it will probably be the key expansion of the future of China's packaging paper companies. It is worth thinking deeply.
On May 25, 2018, Nine Dragons Paper announced that its wholly-owned subsidiary, ND Paper LLC, intends to acquire the entire equity interest in the target company Catalyst Paper Operations Inc. from Catalyst Paper Holdings Inc. at a consideration of US$175 million. The target company is incorporated in the state of Delaware and owns and operates two pulp and paper mills, which are located in Rumford, Maine and Biron, Wisconsin, and are engaged in the manufacture and distribution of various wood pulp, paper and paper packaging materials. The two plants together have 520,000 tons of pulp and 900,000 tons of paper production capacity.
Another paper giant, Shanying Paper, came from behind, and the overseas expansion plan was booming. On July 20, 2017, Shanying Paper purchased a 100% stake in Nordic Paper for 1.952 billion yuan. In April 2018, Shanying Paper acquired a majority stake in BorealBioref Ltd., and provided financing for the company's planned investment of 950 million euros in a 400,000-ton pulp mill project in northern Finland.
Recently, Nippon Paper Co., Ltd. has sold Liberal’s equity to the Chinese market with a huge loss. Oji Paper also suspended the second-phase plan in Nantong, and Zhonglong Paper shut down 450,000 tons of packaging paper in Shanghai in one fell swoop. Capacity, choose to increase investment in Vietnam. Looking at the Rongcheng paper industry in China's packaging paper market, its Hubei base has fallen into a state of prolonged production suspension.
Nowadays, many people in China’s packaging paper market are puzzled. Regardless of how the paper mill lowered its demand forecast, the actual demand is still lower than expected. As a result, several major paper mills, including Xiaolong, Liwen, and Jianhui, have had to bring down and down. National waste initiatives.
It can be foreseen that the ebb tide in the Chinese packaging paper market may in turn surprise all the packaging paper industry. The packaging paper market in the future will be what kind of situation. The words of Ms. Zhang Yin, Chairman of the board of directors of Nine Dragons Paper, interviewed by the New Yorker five years ago seemed quite prescient: “The market has slumped so quickly. It is impossible to reverse the situation.†“This time it is really different, and both big and small businesses have been affected. In the past, the big waves only washed away the sand and left rocks. Now the storm is so large that even some rocks are washed away. â€
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