The most stringent plastic ban activated demand paper prices take off

In the last few days of December 2020, the domestic white cardboard leading collective voice announced price increase. The nominal average price of white cardboard will reach 7,400 RMB/Ton, already very close to the highest record of 7,600 RMB/Ton in 2017.

On one hand, the demand is increasing and the production capacity of white cardboard is insufficient. On the other hand, the new market opportunity of "paper instead of plastic" under the plastic ban appears. A number of paper industry listed companies have released the production capacity expansion announcement, and actively share this cycle feast.The industry is also widely believed that 2021 white card will continue the momentum of growth.

The plastic ban brought a market demand of 3.5 million tons

The price of waste paper has also risen since China banned the import of solid waste in any form since Jan 1 this year. Visited a number of waste recycling stations, acquisition station staff said that the price of waste paper recycling has indeed risen, especially the price of waste pages recycling is higher. By the end of December 2020, the average price of scrap pages in China has risen to 2255 RMB/Ton, up 15% compared with the end of October 2020.

In the face of the increasingly tight raw material gap, papermaking enterprises also began to layout from the raw material end, increase the integration of waste paper resources. Due to raw material waste paper prices continue to rise, grasps the material resources to become the important strategy of enterprises, the paper size paper mills such as nine dragons, the eagle paper began to recycle procurement channels to layout, construction waste entrepot storage, quality and risk, lock the channel advantage also will further aggravate the papermaking industry of market integration, the size of the paper mills with raw materials channel expansion capacity expansion, will occupy more market share, promote industrial concentration further increased.

The rising prices of raw materials such as wood pulp and waste paper have a great impact on the non-competitive paper products production and environmental protection recycling enterprises, which will gradually eliminate these enterprises. The industry scale will be more concentrated in the future, and only those enterprises that deepen the industry to improve the quality and added value of products can better survive.