Global pulp supply is tight, and my country’s paper companies’ export business has grown significantly

Paper pulp is a fibrous substance made from plant fibers as raw materials through different processing methods. It is the basic raw material for papermaking. Pulp is divided into mechanical pulp, chemical pulp and chemical mechanical pulp according to different processing methods; according to the different fiber raw materials used, it is divided into waste paper pulp, wood pulp, hemp pulp, sugarcane pulp, bamboo pulp, rag pulp, etc.; according to the different processing depth, it is divided into Natural pulp, bleached pulp, refined pulp, etc.

In May 2022, Susano Paper and Pulp Company, the world’s largest pulp producer, warned that global pulp stocks have been declining significantly and supply is facing shortages. In recent years, affected by the COVID-19 epidemic, the global logistics industry has experienced many problems, including shortages of human resources, container shortages, rising transportation prices, frequent transportation congestion, and increased transportation time. Many problems cannot be effectively solved, which will ultimately have a greater impact on the import and export of daily necessities raw materials including pulp. European pulp production mainly relies on the supply of raw materials from Eastern Europe. Affected by the logistics industry and the ongoing conflict between Russia and Ukraine, the supply of pulp raw materials is tight, resulting in a decline in pulp production and an imbalance in supply and demand in the global pulp market.

At present, my country’s new crown epidemic prevention and control measures are in place, the epidemic situation is relatively stable compared with other countries, and domestic pulp production is stable. The upstream of the pulp industry chain is a raw material provider. my country’s pulp manufacturing is mainly based on waste paper pulp, and the main raw material waste paper is in sufficient supply. According to data from the China Paper Association, the total domestic waste paper recycling volume in 2021 will be 64.91 million tons, a year-on-year increase of 18.2%. And in the past 10 years, my country’s waste paper recycling volume has been more than 40 million tons, and the supply of waste paper raw materials is relatively stable; the midstream is pulp manufacturers, and the main companies include Shanying Paper, Chenming Paper, Guanhao High-tech, Yibin Paper, etc. ; Downstream are pulp application companies, mainly in the papermaking industry, including offset paper, copper paper, toilet paper and white cardboard.

Affected by the shortage of global pulp supply, the output of foreign paper products industry has continued to decline. Against this background, the export volume of my country’s paper products has surged. The latest data from the National Bureau of Statistics show that in March 2022, the export delivery value of my country’s papermaking and paper products industry reached 5.54 billion yuan, a year-on-year increase of 18.7%. According to the “Pulp (Virgin Pulp and Waste Paper Pulp) Industry In-depth Market Research and Investment Strategy Suggestions Report 2022-2027” released by the Industrial Research Center shows that my country’s papermaking and paper products export business has shown rapid growth since mid-2021. Pulp is an important raw material for the production of paper and paper products industries. The increasing export volume of the latter will surely drive the growing demand for the former, thereby promoting the rapid development of the industry.

Industry analysts personnel said that the insufficient global supply of pulp has promoted the continuous growth of my country’s papermaking and paper products export market, further promoting the growth of my country’s paper pulp export market. development of the industry. However, pulp prices have fluctuated frequently in recent years, making it difficult to judge trends. In order to ensure the sustainable development of my country’s pulp industry, the pulp industry should develop in the direction of clustering in the future to reduce development risks. At the same time, my country’s pulp companies should actively expand their business to the upstream of the industrial chain and build an integrated enterprise that integrates waste paper recycling stations, papermaking factories, product packaging and transfer stations, forming a closed loop of the industrial chain, thereby reducing production costs and improving production efficiency.