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        Latest News on Household Paper

        Date:2014-1-17 10:47

         According to the statistics in the “2013-2017 China Household Paper Industry Market Outlook and Investment Strategy Planning Analysis Report” [1], in 2010, China is expected to have more than 146 above-scale enterprises engaged in the household paper industry, an YOY increase of 2.10%; the industrial output value will reach 32.491 billion yuan, an YOY increase of 38.00%; the sales income will reach 31.749 billion yuan, an YOY increase of 40.71%; and the total profit will be 2.153 billion yuan.

          Most of the domestic paper companies depend on imports for the raw materials of household papers. In 2010, the earthquake in Chile affected 8% of the global supply of commercial pulp and the imports of 14% of pulps; in addition, the strike in the large paper making country Finland also sparked the rise of the prices of household paper worldwide. The prices of a number of household paper varieties have scaled the record high of the past 10 years. The rise of household paper prices has pressed paper companies to reduce production and tighten inventory. It is expected that this situation will not reverse in a short period. From a long-term perspective, household paper prices have a higher probability of going up. According to the estimation of www.qianzhan.com/, from 2011 to 2015, the domestic intended paper production capacity is expected to reach 46 million tons, new demands for 11.3 million tons of hardwood pulp and 3.8 million tons of softwood pulp is expected. Between 2010 and 2015, the production capacity of hardwood pulp is estimated to reach 14 million tons, and that of softwood pulp is 1.5 million tons; but during 2011 and 2012, not many new pulp lines are increased, mostly of which put into operation after 2013. Therefore, the prices of household papers during 2011-2012 show a rising trend. The high international prices have produced a subtle influence on the domestic paper industry. Under the pressure of the costs of imported raw materials, companies with a higher ratio of self-made pulp have certain advantages in terms of cost control; some small paper companies will be eliminated because of backward production capacity. Therefore, if paper companies want to survive in fierce competitions, they can consider increasing investments in the pulp industry, which is conducive to the control of costs and the increase of profits.

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