At the end of the year, the national waste market has been sluggish.

by:CAI YI JIE     2019-01-17

In late December 2018, the national waste yellow paper market was mostly weak and stable. At first, due to the heavy rain and snow weather in the early stage, the market road transportation was not smooth, the willingness to collect and ship was reduced, and then the weather turned fine, and the shipment momentum was strong. As a result, the paper mills received more goods and the first batch of external waste approvals reached 5 million tons in 209 years. The willingness to purchase wastes from the country was not strong, and the national waste purchase price fell slightly, with a range of about 50/ton.

 At the end of the month, the prices in the northern market generally rose. The main reasons are as follows: 1 The finished paper market is still acceptable, 2 critical holidays, paper mills have limited stocks, and the price increases attracts suppliers to replenish stocks. The southern market was stable. In 2019, the second batch of approvals for external waste reached about 430,000 tons. The approved large and medium-sized enterprises were domestically supplied, and the external waste supply was normal. Near the dawn, the atmosphere of speculation has faded, and market supply and demand have returned to dominant position. It is expected that the national waste market in early 2019 will still be dominated by shocks.

 The trend chart of the domestic mainstream paper mills in the second half of the year is as follows:

A few days ago, the data showed that the amount of China's waste paper imports in 2017 was 25.72 million tons, but as of December 7, 2018, this year's total nuclear quantitation only reached 18.1554 million tons, down 29.57% year-on-year, and the future import quota will gradually shrink. On June 24, 2018, the State Council promulgated the 'Opinions of the Central Committee of the Communist Party of China and the State Council on Strengthening Ecological Environment Protection and Resolutely Doing a Good Job in Pollution Prevention and Control', and proposed to 'enhance the prevention and control of solid waste pollution.' It is a total ban on the entry of foreign garbage, cracking down on smuggling, drastically reducing the types and quantities of solid waste imports, and striving to achieve zero import of solid waste by the end of 2020.

 Under the ban on solid waste import, external waste or zero import supervision, the limit on the quantity and quality of foreign waste imports will reach an unprecedented level, which will directly affect the development of China's paper industry. Waste paper imports will fall from a low of 25.72 million tons in 2017 to a very low level, even O. As of July 2018, China's waste paper imports were only 8.53 million tons, down 49.8% year-on-year. The future import quota will continue to shrink.

Source: Prospective Network

Nine Dragons, Shanying Paper, etc. are expanding their production capacity overseas

Shanying Paper acquired the Nordic paper industry in Sweden and entered the global high-end oil-proof paper and kraft paper production. According to its 2017 annual report, Shanying Paper currently has five major papermaking bases at home and abroad. The packaging paper production bases are located in Maanshan, Anhui, Jiaxing Haiyan, Zhejiang, Jingzhou Public Security in Hubei (still under construction) and Zhangzhou, Fujian. Nordic Paper, a specialty paper production base in Sweden and Norway.

From the series of acquisitions of Nine Dragons Paper in the United States this year, the company has paid special attention to the competition for packaging paper fiber raw materials. The acquired targets include air-dried recycled pulp (existing, 218,000 tons) and true color. Sulfate needle pulp (reconstruction, 275,000 tons), in addition, three new recycled pulp production lines (new, 1 million tons) will be built. Most of these raw materials will be shipped back to China in the future, which can greatly replace the role of imported waste paper, ensuring that many imported paper machines that are being produced and will be put into production in Nine Dragons Paper can fully utilize the high performance of imported equipment, and only need to cooperate. With enough domestic waste paper, you can produce high-end products such as A-class cardboard floor display.

 It can be seen that the national waste market will gradually eliminate backward production capacity, small and medium-sized paper mills are difficult to survive, and environmental protection policies are intensifying. Large and medium-sized capable enterprises expand their production capacity overseas, and strive to achieve zero imports in 2020, prompting domestic enterprises to quickly Transformation. This will have a certain impact on the future national waste market.

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