China's packaging paper market rises in September: Forecast of excitement again

 

Factors causing the increase in packaging paper prices in China

Stemming from the policy of restricting the issuance of recalled paper import quotas (RCP) to domestic factories, plus the increase in the import tariff rate of RCP from the US by the Chinese Government, as well as the cost of environmental protection such as steam, wastewater... has increased, so many businesses have switched to using domestically collected RCP, leading to an increase in operating costs and input material costs for paper production...

In order to further protect the environment, the State of China has also issued increasingly stringent regulations on plastic waste, especially single-use plastics, so that consumers and businesses are choosing paper packaging as a means of alternative sentences. Combined with that, consumer demand has increased again because paper packaging manufacturers have increased their purchases and increased their reserves by 2-4 times for the main season, serving major holidays of the year such as Christmas, etc Lunar New Year & Lunar New Year in Asia.

Starting from the end of August 2019, the price increase of testliner paper and corrugated paper, other packaging paper has taken place in almost all Chinese markets and has a slight increase of 20-30 RMB/ton. In September 2019 in the Chinese market, according to statistics, up to 52 enterprises have officially announced an increase in selling prices from 50 to 100 RMB/ton, equivalent to 7 – 15 USD/ton and are expected to increase by 100 RMB/ton (15 USD/ton) in the near future. The price increase fluctuated first and mainly from 04 leading Chinese manufacturing enterprises, namely Nine Dragons Paper, Lee&Man, Shanying International, Zhejiang Jingxing Paper and then spread to small and medium-sized  enterprises and took place almost everywhere regions in China.

 What are the prospects for Vietnamese packaging paper manufacturers?

According to VPPA's statistics, in terms of Vietnam's total paper exports, the export volume of testliner & medium paper to the Chinese market in 2017 accounted for 60.1%, in 2018 it accounted for 71.2%, in the first 8 months of 2019 it accounted for 60.5%, Thus, it can be seen that China is a key market for exporting testliner & medium paper of Vietnamese industrial packaging paper manufacturers.

The wave of increase in packaging paper prices in China may have effects on Vietnam's packaging paper market:

Firstly, the price of domestically produced commercial packaging paper is likely to increase by about 300,000 – 500,000 VND/ton according to the price increase in the Chinese market and reduce competitive pressure with imported packaging paper prices.

Secondly, the rebound in the export market in Asia will reduce price competitive pressure, especially in the Chinese market, while production costs, environmental treatment, and operating costs are increasing.

Statistics of the price increase of testliner & medium paper, the period of increase of different companies in China:

 

Stt	Company Name	Province / City	Paper Type	Price increase (RMB/ton)	Time   of price increase
Southern China
1	Nine Dragons paper	Guangdong	White top, Testliner, Medium	50 RMB	17/9/2019
2	Dongguan Jiefeng Paper	Guangdong	Medium	50 RMB	11/9/2019
3	Dongguan Jianhang Paper	Guangdong	Medium	50 RMB	11/9/2019
4	Dongguan Shanglong Paper	Guangdong	Medium	50 RMB	11/9/2019
5	Dongguan Jianhui Paper	Guangdong	Testliner	50 RMB	11/9/2019
6	Dongguan Yinzhou Paper	Guangdong	Testliner	50 RMB	11/9/2019
7	Dongguan Taichang Paper	Guangdong	Testliner	50 RMB	11/9/2019
8	Dongguan Xufeng Paper	Guangdong	Medium	50 RMB	11/9/2019
9	Dongguan Lee & Man Paper	Guangdong	Testliner	50 RMB	10/9/2019
10	Guangdong Huatai Paper	Guangdong	Medium	100 RMB	9/9/2019
11	Guangxi Guigang Paper	Guangxi	Medium	50 RMB	10/9/2019
Northern China
1	Nine Dragons paper	Tianjin	Ivoryboard, Testliner, Medium	50 RMB	9 – 17/9/2019
2	Shunfa paper	Hebei	Testliner, Medium	60 RMB	1 – 9/9/2019
3	Ruixiang paper	Hebei	Duplex, Testliner	100 RMB	4/9/2019
4	Senxin Yutian paper	Hebei	Duplex, Testliner	50 RMB	1/9/2019
East China
1	Quzhou Gangxing Paper	Fujian	Kraftliner, Testliner	100 RMB	1 – 15/9/2019
2	Longhai Liansheng paper	Fujian	Testliner	50 RMB	10/9/2019
3	Samsung Longhai paper	Fujian	Medium	50 RMB	6/9/2019
4	Deyan paper	Fujian	Kraftboard	100 RMB	5/9/2019
5	Gangzhou paper	Fujian	Duplex, Testliner	100 RMB	4/9/2019
6	Nine Dragons paper	Fujian	Kraftliner, Testliner	50 RMB	1/9/2019
7	Suifeng paper	Zhejiang	Medium	100 RMB	9/9/2019
8	Zhejiang Forest Paper	Zhejiang	Duplex, Testliner	50 RMB	9/9/2019
9	Zhejiang Tongxiang paper	Zhejiang	Kraftboard	100 RMB	5/9/2019
10	Zhejiang Huachuan paper	Zhejiang	Kraftboard	50 RMB	5/9/2019
11	Jiaxing Hongya Paper	Zhejiang	Kraftboard	50 RMB	5/9/2019
12	Zhejiang Hangzhou Fuyang	Zhejiang	Coreboard, Kraftboard	100 RMB	2/9/2019
13	Zhejiang Dashengda	Zhejiang	Testliner, Medium	100 RMB	1/9/2019
14	Zhejiang Hongyi Holding	Zhejiang	Testliner, Medium	100 RMB	1/9/2019
15	Zhejiang Daoqin Paper	Zhejiang	Testliner, Medium	100 RMB	1/9/2019
16	Anhui Shanying Paper	Anhui	Testliner, Medium	50 RMB	9/9/2019
17	Shandong Tiandiyuan	Shandong	Testliner, Medium	50 RMB	7/9/2019
18	Baoding Paper	Shandong	Kraftboard	50 RMB	4/9/2019
19	Shandong Fengyuan Tongda	Shandong	Kraftboard	100 RMB	5/9/2019
20	Shandong Huisheng	Shandong	Kraftboard	100 RMB	4/9/2019
21	Shandong Luli Paper	Shandong	Testliner, Medium	50 RMB	2/9/2019
22	Jiangsu Lishui Xiexin	Jiangsu	White-top, Kraftliner	100 RMB	5/9/2019
23	Jiangsu Jiangyin Minglu	Jiangsu	Coated Duplex,	100 RMB	1/9/2019
24	Jiangsu Fuxing Paper	Jiangsu	Coated Duplex,	100 RMB	1/9/2019
25	Nine Dragons Paper	Jiangsu	Kraftliner, Testliner	50 RMB	1/9/2019
26	Shanghai Zhaomei Paper	Shanghai	Medium	100 RMB	3/9/2019
China Side China
1	Hubei Shengda Paper	Hubei	Testliner, Medium	50 RMB	12/9/2019
2	Hubei Xiangxing Paper	Hubei	Testliner, Medium	50 RMB	7/9/2019
3	Hubei Changjiang Huifeng	Hubei	White-top	100 RMB	1/9/2019
4	Hunan Hengshan Xinjinlong	Hunan	Kraftboard	50 RMB	4/9/2019
5	Henan Longyuan Paper	Henan	Medium, Duplex	50 RMB	4/9/2019
6	Henan Xingtai Paper	Henan	Coated Duplex,	100 RMB	1/9/2019
Southwest China
1	Shanxi Famen Temple	Shaanxi	Medium	50 RMB	5/9/2019
2	Tongxin paper	Chongqing	Testliner, Medium	50 RMB	5/9/2019
3	Minglu paper	Sichuan	Coated Duplex	100 RMB	1/9/2019
4	Qixiang paper	Jilin	Medium	100 RMB	1/9/2019

according to VPPA