Recently, the domestic paper market has experienced a certain degree of fluctuation, mainly showing the following characteristics:
1. The decline in the price of certain varieties was the lead, followed by the rapid fall of prices in most paper species and the whirlpool of bears that experienced a sharp drop in transactions.
2. Unlike the previous market fluctuations, this round of changes in China’s market, which preceded the decline of the international pulp market, fell earlier than the paper market in neighboring countries, indicating that the Chinese market has gradually evolved from the past of the international market and gradually evolved into the source of international market conditions. one.
Affected by this, imports of coated paper, offset paper, etc., which have long been the survival of many foreign companies, are proud of their projects. The so-called "lose orders" and "drop orders" with "Chinese characteristics" are commonplace, and foreign investors suffer heavy losses. From a short-term perspective, the new round of investment in domestic products on national paper, offset paper, newsprint and other basic products will form production capacity within two or three years. By then, the import of foreign similar products will be further curbed.
On the other hand, the oversupply of global paper production still exists. In recent years, although the wave of mergers and acquisitions has made supply and demand tend to be reasonable, the existing or new production capacity in the surrounding markets of China, South Korea, Indonesia, India, and Thailand is huge, far exceeding the self-owned demand of these countries. It can be said that if the imported paper in the Chinese market is not resolved properly, there may be vicious competition between imported products and domestic products in the main paper varieties, which will cause the entire paper market to slump. In a sense, it is currently the most difficult situation faced by foreign paper companies in China in the past 20 years.
However, at the same time that we were in trouble, we also saw that the high growth of the Chinese market still gives foreigners quite a few opportunities:
1. China is rapidly changing from paper import to an exporter of a considerable number of paper types. In response to this situation, some foreign investors have shifted their business focus to exporting Chinese paper products. At present, the export agency rights of most of the well-known domestic paper brands have not yet been established, and there are a lot of business opportunities during this period.
2. Further adjust the structure of imported paper products. At this stage, foreign companies should increase supply in the following domestically urgently needed paper types.
A. Various types of thermal papers and color inkjet papers that are closely related to the IT industry;
B. Lightweight coated and coated paper with low basis weight (less than 80g) and high basis weight (above 200g);
C, high printability, high strength, low weight kraft paper (for green packaging).
3. Take advantage of the relaxed policy environment brought about by China's accession to the WTO and actively participate in the competition in the domestic trade market. In China's paper market, due to the “low thresholdâ€, short-term operations of small companies are prevalent and market fluctuations are greater than international markets, and the average profit rate of the entire industry is lower than that of foreign counterparts. In this market, too many are small plates, but less are aircraft carriers. Under the environment of accession to the WTO, foreign companies can use their strong financial strength and standard operating practices to find a wide range of survival in the domestic market. Space, while improving the overall level of the domestic paper market.
4. In China's paper market, there are still quite a few fields, which are either blank or have great potential; or, although there is production, the level is low. For example, most of the products mentioned in point 2 above are also the waste paper recycling system that has long been awaited by the Chinese people. If foreign investors use their financial and technological advantages to pursue development in these areas, they believe there is much to be achieved. In addition, it is understood that due to the fact that some domestic manufacturers have risen in a number of investment projects in the past few years, they have occupied each other's markets, and a considerable part of the papermaking equipment has recently been idle. If foreign investors can grasp the opportunities and take a positive attitude to cooperate with China, they can turn these equipments into their own sources of wealth.
1. The decline in the price of certain varieties was the lead, followed by the rapid fall of prices in most paper species and the whirlpool of bears that experienced a sharp drop in transactions.
2. Unlike the previous market fluctuations, this round of changes in China’s market, which preceded the decline of the international pulp market, fell earlier than the paper market in neighboring countries, indicating that the Chinese market has gradually evolved from the past of the international market and gradually evolved into the source of international market conditions. one.
Affected by this, imports of coated paper, offset paper, etc., which have long been the survival of many foreign companies, are proud of their projects. The so-called "lose orders" and "drop orders" with "Chinese characteristics" are commonplace, and foreign investors suffer heavy losses. From a short-term perspective, the new round of investment in domestic products on national paper, offset paper, newsprint and other basic products will form production capacity within two or three years. By then, the import of foreign similar products will be further curbed.
On the other hand, the oversupply of global paper production still exists. In recent years, although the wave of mergers and acquisitions has made supply and demand tend to be reasonable, the existing or new production capacity in the surrounding markets of China, South Korea, Indonesia, India, and Thailand is huge, far exceeding the self-owned demand of these countries. It can be said that if the imported paper in the Chinese market is not resolved properly, there may be vicious competition between imported products and domestic products in the main paper varieties, which will cause the entire paper market to slump. In a sense, it is currently the most difficult situation faced by foreign paper companies in China in the past 20 years.
However, at the same time that we were in trouble, we also saw that the high growth of the Chinese market still gives foreigners quite a few opportunities:
1. China is rapidly changing from paper import to an exporter of a considerable number of paper types. In response to this situation, some foreign investors have shifted their business focus to exporting Chinese paper products. At present, the export agency rights of most of the well-known domestic paper brands have not yet been established, and there are a lot of business opportunities during this period.
2. Further adjust the structure of imported paper products. At this stage, foreign companies should increase supply in the following domestically urgently needed paper types.
A. Various types of thermal papers and color inkjet papers that are closely related to the IT industry;
B. Lightweight coated and coated paper with low basis weight (less than 80g) and high basis weight (above 200g);
C, high printability, high strength, low weight kraft paper (for green packaging).
3. Take advantage of the relaxed policy environment brought about by China's accession to the WTO and actively participate in the competition in the domestic trade market. In China's paper market, due to the “low thresholdâ€, short-term operations of small companies are prevalent and market fluctuations are greater than international markets, and the average profit rate of the entire industry is lower than that of foreign counterparts. In this market, too many are small plates, but less are aircraft carriers. Under the environment of accession to the WTO, foreign companies can use their strong financial strength and standard operating practices to find a wide range of survival in the domestic market. Space, while improving the overall level of the domestic paper market.
4. In China's paper market, there are still quite a few fields, which are either blank or have great potential; or, although there is production, the level is low. For example, most of the products mentioned in point 2 above are also the waste paper recycling system that has long been awaited by the Chinese people. If foreign investors use their financial and technological advantages to pursue development in these areas, they believe there is much to be achieved. In addition, it is understood that due to the fact that some domestic manufacturers have risen in a number of investment projects in the past few years, they have occupied each other's markets, and a considerable part of the papermaking equipment has recently been idle. If foreign investors can grasp the opportunities and take a positive attitude to cooperate with China, they can turn these equipments into their own sources of wealth.