The export business of China's paper enterprises will grow significantly after 2022 when the global pulp supply is tight

In May 2022, Susano Paper and Pulp Company, the world's largest pulp producer, issued a warning that the global pulp inventory has been declining significantly and the supply is facing a shortage.

In recent years, affected by the COVID-19, many problems have emerged in the global logistics industry, including shortage of human resources, shortage of containers, rising transport prices, frequent transport congestion, and increased transport time. Many problems can not be effectively solved, which ultimately has a greater impact on the import and export of raw materials for daily necessities, including pulp. The raw materials for European pulp production mainly depend on the supply of Eastern Europe. Affected by the logistics industry and the continuing conflict between Russia and Ukraine, the supply of raw materials for pulp is tight, leading to a decline in pulp production and imbalance in supply and demand in the global pulp market.

At present, China's COVID-19 epidemic prevention and control measures are in place. Compared with other countries, the epidemic situation is relatively stable, and the domestic pulp output is stable. The upstream of the pulp industry chain is the supplier of raw materials. China's pulp manufacturing is dominated by waste pulp, and the supply of waste paper, the main raw material, is sufficient. According to the data of China Paper Association, the total domestic waste paper recycling will be 64.91 million tons in 2021, an increase of 18.2% year on year. In the past 10 years, China's waste paper recycling will be more than 40 million tons, and the supply of waste paper raw materials will be relatively stable; The middle reaches are pulp manufacturers, mainly including Shanying Paper, Chenming Paper, Guanhao High tech, Yibin Paper, etc; Downstream are pulp application enterprises, mainly in the papermaking industry, including gummed paper, copperboard paper, toilet paper and white cardboard.

Affected by the shortage of global pulp supply, the output of foreign paper products industry has been declining. Under this background, China's paper products export business has increased rapidly. The latest data from the National Bureau of Statistics shows that in March 2022, the export delivery value of China's paper and paper products industry will reach 5.54 billion yuan, up 18.7% year on year. According to the Report on Deep Market Research and Investment Strategy Suggestions for the Pulp (Raw Pulp and Waste Pulp) Industry from 2022 to 2027 released by the New Thought Industry Research Center, China's paper and paper products export business has shown a rapid growth trend since the middle of 2021. Pulp is an important raw material for the production of paper making and paper products industry. The increasing export volume of the latter will certainly drive the growing demand of the former, thus promoting the rapid development of the industry.

Some analysts said that the shortage of global pulp supply has promoted the continuous growth of China's paper and paper products export market and further promoted the development of China's pulp industry. However, in recent years, the price of pulp fluctuates frequently, and it is difficult to judge the trend. In order to ensure the sustainable development of China's pulp industry, the future pulp industry should be clustered to reduce the development risk. At the same time, China's pulp enterprises should actively expand their business to the upstream of the industrial chain, build an integrated enterprise integrating waste paper recycling stations, paper mills, product packaging and transfer stations, and form a closed loop of the industrial chain, so as to reduce production costs and improve production efficiency.