Analysis of China's paper industry operation data in 2018 and market forecast in 2019

Analysis of China's paper industry operation data in 2018 and market forecast in 2019

After the introduction of the most stringent environmental protection measures in the history of 2018, it is undoubtedly worse for the paper industry, which is already a tough industry. News such as the shutdown and rectification of paper mills, the clearing of production capacity, peak staggering production, and high price fines are common. In 2018, the overall situation of the paper industry is not optimistic. The loss area of the paper industry has expanded, the total loss has increased, the total profit has decreased, and the profitability has declined.

Market situation of China's paper industry

1、 China's paper industry's loss expansion

With the continuous deepening of national environmental governance, paper-making enterprises have become the focus of attention. Small paper mills with heavy pollution have been forced to withdraw from the market, and many paper-making enterprises have made losses. In 2018, there were 6704 paper-making enterprises and 1045 loss making enterprises, with a year-on-year growth of 23.5% and a loss area of 15.6%, an increase over 2017. At the same time, the scale of loss of paper-making enterprises also expanded. In 2018, the loss of paper-making enterprises was 8 billion yuan, up 58.3% year on year.www.chinacartonmachine.com

2. Growth of main business income of China's paper industry

According to the monitoring data of China Business Industry Research Institute, in 2018, the main business revenue of Chinese paper-making enterprises was relatively objective, with the main business revenue of 1372.79 billion yuan, an increase of 8.3% year on year. Although many paper-making enterprises have gone bankrupt due to environmental protection, the concentration of Chinese paper-making enterprises has increased, and the main business revenue of large paper-making enterprises has increased, thus driving the main business revenue of the whole industry to rise.

3、 Total profit of China's paper industry declined

Due to the limited supply of raw materials, the long production cost of enterprises and the sluggish downstream demand, the profits of China's paper-making enterprises declined in 2018. The total profit of paper-making enterprises decreased by 8.5%%, from 83.78 billion yuan in 2017 to 76.64 billion yuan in 2018.

4、 China's paper industry's profitability declines

In recent years, the profitability of China's paper industry has shown a trend of improvement, with the gross profit rate exceeding 13%, and the sales profit margin increased from 5.2% in 2013 to 6.5% in 2017. In 2018, the profit of paper industry decreased, with a gross profit margin of 13.7% and a sales profit margin of 5.5%.

2019 paper industry forecast

In recent years, some problems accumulated in China's paper industry in the golden decade (2000-2010) began to break out, such as high dependence on raw materials import, unbalanced product structure, high-end paper products rely on import, and the domestic waste paper recycling system is not perfect. In 2018, the paper industry was affected by factors such as the continuous tightening of environmental protection and limited supply of raw materials. Under the internal and external troubles, many paper-making enterprises have accelerated the elimination of backward production capacity and began to layout overseas production capacity. At the same time, paper-making enterprises have developed in the direction of industrial chain integration through the extension to the upstream and downstream, so as to control raw materials from the source and reduce costs, develop packaging industry and alleviate the impact of market fluctuations on demand.

Looking forward to 2019, although there are still many uncertainties in the external environment, the paper industry will still be a year of challenges and opportunities. In 2019, the paper industry may continue its downturn. The overall situation of the paper industry is not optimistic. This wave of severe test is like a wave of sand. The "leftovers" are the king.