With the development of secondary fiber recycling, waste paper and pulp play a vital role in the paper and pulp industry. Waste paper pulp, wood pulp, and non-wood pulp are three largest paper pulp classifications. As a large waste paper and pulp consumption country, China consumed waste paper pulp 6, 3290 thousand tons in 2016. Today, we will analyze the waste paper pulp market from three parts: price, raw material, and status of the waste paper. Due to the restriction of import and industrial development, waste paper and waste paper pulp of China is hot in 2017. Paper price increase obviously benefits from the tight production capacity, supply and demand.
CNBM is specialized in providing custom-designed paper pulp solutions, such as wood pulp, straw pulp, waste paper pulp and others. We also supply single paper pulp machines like pulp digester, drum washer, disc filter, twin roll press, etc. For your convenience, we sum up a report on wast paper pulp of 2017.
Price of paper
Before analyzing the price trend of paper, we get two factors that influence the paper price include supply and demand pattern and cost of production. Besides, supply and demand pattern is considered as the prerequisite, it decides if the price changes quickly affect the downstream industry.
Supply and demand pattern
Supply Side: the paper production contract distinctly under huge environmental pressure in a long term. In the paper and pulp industry, there are a number of small and medium-sized paper mills. These paper mills were shut down because of the outdated production line and weak sewage capacity. As of late July 2017, the numbers of papermaking enterprise decrease 9.9%, competition pattern and industry concentration are improved. We can predict more outdated paper and pulp mills will be shut down and industry leader will be the first gainer.
Demand-side: traditional demand season overlay and compensatory purchase in short period. The fourth quarter is generally the demand season in a year. Strain in the supply
Restriction of import
In China, waste paper and pulp has a large demand and it mostly depends on the importing. In 2014, there are 5 kinds of paper is made of waste paper pulp, including newspaper, package paper, white paperboard, case board and fluting medium, these types of paper production totaling 67,050,000 tons, it takes 64.04% of total capacity of paper and paperboard. Case board and fluting medium are mainly made from waste paper and waste paper pulp.
Because of the limitation of waste paper importing, there is still a large gap of waste paper. To the requirement of environmental protection, the Chinese government said that no longer accept the waste paper without sorting until end of the year, and it has been notified to the WTO up to July 2017. The limited importing waste paper is about 5000-6000 thousand tons, takes 20% of the total importing waste paper. What’s more, local waste paper purchase rose because of the limitation of importing. Part of dealers store up the goods and push up the price of local waster paper, waste paper prices at home and abroad hang upside down. The price rising of local waste paper results in the obvious decline in the quality. From now on, the local waste paper is in short of supply, and the price is too high to receive the goods. Based on the trend, we can foresee that waste paper price will rise continuously.
Other factors
Due to the lack of forest resources and high cost of forest management, the price of wood chips is high. Imported wood chips need higher freight. Meanwhile, the domestic wood pulp is limited by some policies, and Chinese wood pulp capacity only takes 8% of demand. In a word, Chinese paper pulp relies heavily on imports. In 2016, importing pulp consumption of China reaches 18, 810 thousand tons. As the largest pulp importing country, import dependence rate of China reaches 65%. The data show that the capacity of importing pulp totaling 10,100 thousand tons from January to May 2017.
Foreigner market
Chinese paper pulp price is affected by the importing pulp price. According to the capacity plan of paper pulp mills home and aboard, in the future, pulp capacity will be raised in the speed of 2%.
Raw materials
The raw material of waste paper and pulp highly depend on the importing waste papers. By annual consumption, Chinese waste paper and importing waste paper ratio is 6:4. Since June 2017, the importing waste paper is limited by import quota, lead to the demand for Chinese waste paper rise in a short period. The average price of Chinese waste paper rose 55.26% in a year.
Global waste paper recycling
The five countries and regions with the highest recovery around the world include Hong Kong, German, Korea, Japan and Taiwan (China.) Especially recovery of Hong Kong and German is respectively 88.2% and 71%.
The three countries and regions with highest utilization ratio include Mexico, Taiwan (China) and Korea. Mexico’s paper and pulp industry rely on the waste paper.
USA
The United States is the largest paper pulp and paperboard manufacturing country in the world. America promotes the waste paper recycling and encourages the enterprises to manufacture paperboard and packing material with waste paper. For example, the Stone process corrugated board from waste paper to package the goods. R-Tech process E-cubes package materials that are made from waste paper, it is used to package fragile products. Compared with traditional foaming plastics, these types of package material is more convenient, biodegradable, recycled and nontoxic.
Japan
Japan’s output of paper ranks only second to the United States. Recently, the paper and paperboard capacity of Japan rose year by year. In 2001, paper capacity of Japan is 30,717 thousand tons, it is 1.1 times of paper capacity in 1990. The wood pulp consumption maintains a fixed value from 1990 to 2001, because the wastepaper becomes the main raw materials of paper and pulp industry in Japan. In 2001, the waste paper takes 58% of raw materials of paper and paperboard in Japan.
German
German is short of fiber resource, it imports a large number of market pulp and paper. Due to the large paper and pulp consumption and high waste paper recovery, German also exports a large quantity of waste paper every year. As the world’s second-largest waste paper exporting country, in 2000, German’s waste paper and paperboard capacity reach 18,182 thousand tons, the waste paper consumption is 19,112 thousand tons, and the waste paper recovery is 13,570 thousand tons, it takes 71% of whole waste paper consumption.
Finland
Finland has rich forest resource, and the forest is more than 70% of the whole national territorial area. Finland exports a large number of wood pulp each year. Finland always attaches importance to the waste paper recycling. Classification dustbins are settled in the residential area and supermarket. In 2002, 40% of recycled waste paper is used for paperboard manufacturing; 36% is used for the newspaper production; 21% is used for soft paper.
In conclusion, the waste paper becomes the most important materials for pulp making and paper making. According to the estimate, 1-ton recycled waste paper can manufacture 0.8-ton recycled paper and save about 4 cubic meters of wood.
