Why China paper prices rise in 2021?

 In the final analysis, the price rise is mainly raw material pulp prices lead to the increase in papermaking costs.According to the statistics of China Paper Association, in November 2020, the pulp price index rose 3.04% to 93.00 points, and the material volume index rose 0.36% to 74.66 points.From raw materials, paper, paper towel prices are closely related to wood pulp.Data shows that the current market pulp is mainly divided into wood pulp, non wood pulp and waste pulp three categories.

Among them, copperplate paper, white cardboard and other raw materials are mainly wood pulp, domestic paper raw materials are also mostly wood pulp, bamboo pulp and bagasse pulp are gradually increasing.At the same time, domestic wood pulp in November, broadleaf pulp, chemical pulp output is also decreased, so the overall supply is relatively reduced, the natural price will rise.Now some experts predict that the overall development trend of the paper industry in 2021 is upward, which is simply that the price of paper will rise.

    In addition to culture paper and daily paper, under the leadership of Nine Dragons and other leading packaging paper enterprises, the price of corrugated paper, box paper, white board paper and other packaging paper has also been reported.Nine Dragons’ No. 1 and No. 2 production bases also announced extra-long Spring Festival outages.”Downtime + price rise” under the double recruit, cardboard price rise tide also came.The usable waste paper is mainly used for the production of box board, corrugated, white board, etc., to supply the downstream packaging demand.

    Unlike wood pulp, two-thirds of the waste paper is domestic waste paper and one-third is imported waste paper.Packaging paper production enterprises have raised prices, “ban waste order” is a major factor.At the same time, under the ban on waste, the price of waste paper is also on the rise, the current box paper, white paper these packaging paper prices are also on the rise.67% of the domestic waste paper source is from the domestic, the rest is basically imported waste paper, packaging paper prices rise, one of the reasons is the ban on waste.

    With the reduction of import quotas, the amount of imported waste paper in China is actually declining. In 2016, the amount of imported waste paper in China is 28 million tons, but only more than 5 million tons in the first ten months of 2020.In November 2020, the National Development and Reform Commission, the Ministry of Ecology and Environment, the Ministry of Commerce and the General Administration of Customs jointly issued the Announcement on Relevant Issues Concerning the Comprehensive Ban on the Import of Solid Waste, explicitly prohibiting the import of solid waste in any form, which will come into force on January 1, 2021.

    Waste paper “zero import”, paper mills have increased raw material inventory, driving the price of waste paper to accelerate the rise.Different kinds of waste paper, the purchase price is not the same, now a ton of waste paper purchase price between 1500-2000 yuan.Good waste paper varieties rise more, recently a ton of about more than 100 yuan.Under the influence of zero import of waste paper at the end of the year, the raw material gap of packaging paper stimulates domestic and foreign pulp mills to produce local color pulp, which indirectly supports the price of conifer pulp, and then increases the cost pressure of downstream household paper to a certain extent.