Paper Industry Continues Upward Trend, Companies Optimistic for the Second Half
On the evening of June 9, CCTV News reported that according to the latest statistics released by the China National Light Industry Council, the light industry economy in China continued its upward trend from January to April this year, providing significant support for the stable development of the industrial economy. Notably, the paper industry saw an increase in added value growth exceeding 10%.
According to Securities Daily, multiple companies and analysts hold an optimistic outlook for the paper industry in the second half of the year. The rising domestic demand in home appliances, home furnishings, and e-commerce, along with the recovery of the international consumer market, points to a promising demand for paper products.
Optimistic Outlook for the Second Quarter
Statistics from the China National Light Industry Council show that from January to April this year, the light industry achieved nearly 7 trillion yuan in revenue, a year-on-year increase of 2.6%. The added value of large-scale light industries grew by 5.9%, and the total export value of the light industry increased by 3.5% year-on-year. Notably, the added value growth in the paper, plastic products, and home appliance manufacturing sectors exceeded 10%.
Bohui Paper is actively adjusting its product structure to meet the recovery in domestic and international demand. The company’s Jiangsu base is accelerating the construction of an 800,000-ton high-end packaging paper project, and the export proportion of coated products from its Shandong base is increasing. The new white kraft packaging paper is widely used in the food and pharmaceutical industries, with market expansion efforts underway.
Wei Yongqing, the company’s secretary, stated: “The production and sales volume in the first quarter were affected by the Spring Festival and did not fully reach potential. In the second quarter, we aim to maximize production and sales, actively capturing market share and improving customer satisfaction. Currently, our product structure and quality are becoming increasingly stable, and the focus will be on product differentiation and increasing export volumes.”
Similarly, Pang Fucheng, the secretary of Sun Paper, noted: “Entering the second quarter, the demand for cultural paper has continued its previous peak season trend. After issuing price increase notices, the downstream market has responded well. Currently, our cultural paper production lines are operating at full capacity and sales are normal. With the start of bidding, the overall market for cultural paper is expected to remain in a reasonably good state.”
Yueyang Forest & Paper is also actively adjusting its product structure. Secretary Yi Lankai stated: “From our observations, many domestic paper companies are optimizing their product structures, increasing high-margin differentiated products to enhance their market influence. Companies with innovation and scale have more confidence in raising prices in both domestic and international markets.”
Gradual Recovery in Downstream Demand
While companies are actively adjusting their product structures and promoting technological innovation, industry insiders remain optimistic about the paper industry’s prospects for the second half of the year.
Yi Lankai expressed optimism about the paper product market: “Overseas demand for paper products is recovering, with consumer markets in Europe, North America, and the Middle East warming up. Retailers are actively replenishing inventories, particularly in the household paper sector. Additionally, recent geopolitical tensions have lengthened shipping cycles, further boosting overseas downstream retailers’ inventory replenishment enthusiasm. For domestic paper companies with export businesses, this is the peak sales season.”
Jiang Wenqiang, a light industry analyst at Guosheng Securities, analyzed the situation in various market segments: “Within the paper industry, several sub-sectors have already shown positive signals. Particularly, the demand for packaging paper, corrugated paper, and paper-based films used in e-commerce logistics and overseas exports is rising. The reasons include the recovery of demand in downstream sectors such as domestic home appliances, home furnishings, express delivery, and retail. Additionally, domestic companies are setting up branches or offices overseas to meet expanding foreign demand, creating a synergistic pull effect.”
Zhu Sixiang, a researcher at Galaxy Futures, stated: “Recently, several large-scale paper mills have announced price increase plans, with the price range from 20 yuan/ton to 70 yuan/ton, which will drive bullish market sentiment. Starting in July, the domestic paper market is expected to transition from a low season to a high season, with terminal demand likely to strengthen. Overall, the domestic paper market is projected to start weak and finish strong this year.”