Market analysis of paper industry Box board and corrugated paper become the focus of competition

Market analysis of paper industry Box board and corrugated paper become the focus of competition
The effect of supply-side reform is remarkable, and the industry concentration is increasing
In the past two years, affected by the national supply-side reform policy and the tightening policy of environmental protection, the number of enterprises above the designated size in the paper industry has decreased significantly in 2015, and the following two years also maintain the trend of decreasing year by year. In 2017, the number of enterprises above designated size in China’s paper industry was 2754. It is expected that some backward enterprises will be eliminated by the market in 2018 under the influence of the tight supply of raw materials and weak demand in the downstream market.chocolate box
From the perspective of industry concentration, according to the data of China Paper Association, the market concentration of China’s paper industry has been rising since 2011. According to this trend, CR10 is expected to reach more than 40% in 2018; CR5 will be close to 30%.
Leading enterprises have outstanding capacity advantages, and carton/corrugated paper is the focus of competition cigarette box
In the paper industry, the capacity directly determines the competitiveness of enterprises. At present, the top domestic paper production enterprises mainly include Jiulong Paper, Chenming Paper, Liwen Paper, Shanying Paper, Sun Paper and Bohui Paper. In terms of existing capacity, Jiulong Enterprise is far ahead of other enterprises and has a greater competitive advantage. In terms of new capacity, Jiulong Paper, Sun Paper and Bohui Paper have all added more than 2 million tons of new capacity, while Liwen Paper has the least new capacity, only 740000 tons.hemp box
Tight supply has driven up the price of raw materials, damaged the profitability of small enterprises and further accelerated the liquidation of production capacity. Based on the advantages of capital and resources, leading enterprises have strong raw material acquisition ability, continuous promotion of production capacity, and significant competitive advantages.vape box
More specifically, in terms of the enterprise’s capacity layout, carton paper and corrugated paper are the key points of the enterprise’s capacity layout, which is closely related to the market demand. In 2017, the domestic production of box board and corrugated paper was 23.85 million tons and 23.35 million tons respectively, accounting for more than 20% of the output; The consumption also shows the same characteristics. It can be seen that the box board and corrugated paper are the current competitive focus of major enterprises.dry dates box
In addition, from the perspective of the production plans of the leading enterprises in the next 2-3 years, the production capacity of the waste paper system is more than that of the corrugated paper, while the production capacity of the cultural paper is relatively stable due to the relatively rigid demand. It can be expected that in the future, the competition of the box board and corrugated paper will be more intense.