company news about The demand for the paper industry in the peak season has changed, and the industry expects that the fourth quarter is expected to usher in an upward turning point!

1. Operation of the paper industry from January to July 2022
From January to July 2022, the national output of machine-made paper and cardboard was 79.216 million tons, a year-on-year decrease of 0.9%. The operating income of paper and paper products enterprises above designated size was 851.79 billion yuan, a year-on-year increase of 2.4%.
2. The demand in the paper industry has changed in the peak season, and the industry expects that the fourth quarter is expected to usher in an upward turning point
Since the beginning of this year, affected by the epidemic and other factors, the prices of energy, chemical raw materials, wood chips, logistics, etc. have remained high, and the operating costs of the paper industry have risen, while the downward transmission of costs has been insufficient, and the profitability of the paper industry has been squeezed. Due to the sharp rise in pulp prices this year, the current pulp prices and the ex-factory prices of most paper products have been inverted. This is also the main reason why many small and medium-sized paper mills lose money or choose to shut down. The profitability of most papermaking enterprises is already at a low level, and pulp prices continue to rise without demand-side support. It is expected that the industry turning point may come in the middle and late fourth quarter. The spot price of softwood pulp has reached an inflection point, but it will still fluctuate at a high level in the short term.
3. The production volume of the national wood pulp market was 10.5 million tons, an increase of 4.48%
In the first seven months of this year, Manzhouli port imported 299,000 tons of pulp, a year-on-year increase of 11.6%; the value was 1.36 billion, a year-on-year increase of 43.8%. It is worth mentioning that in July this year, the imported pulp at Manzhouli port was 34,000 tons, an increase of 8% year-on-year; the value was 190 million, an increase of 63.5% year-on-year. In the first seven months of this year, China's most mainland port - Manzhouli port, the import value of pulp exceeded 1.3 billion. This is related to the relatively large increase in domestic wood pulp market demand in the first half of this year, which has led to an increase in imports.
4. The recycling rate of OCC waste paper in the United States exceeds 90%? It may actually be less than 70%
The recycling rate for used corrugated boxes (OCC) in the United States is about 69%, well below the 91.4% reported by the American Forest and Paper Association (AF&PA) in May of this year. They estimate that U.S. used corrugated box (OCC) generation is higher than shown in the AF&PA data, mainly because of the large number of cartons entering the U.S. to store imported goods (imported cartons are not considered in AF&PA's data), if imports are included carton. Then a larger denominator would result in the recovery rate calculation, resulting in a lower recovery rate.
5. Leading paper companies continue to issue shutdown letters in September
Nine Dragons Paper, which continuously issued shutdown letters in August, continued the shutdown rhythm in early September, and the Dongguan base and Quanzhou base extended the shutdown time from August to September. The new shutdown letter shows that the Taicang base, Chongqing base, Shenyang base, Hebei and Tianjin bases will continue to maintain a prolonged shutdown period from September to October. In addition to Nine Dragons Paper, two other leading paper companies in Dongguan, Jinzhou Paper and Jintian Paper, also announced new shutdown plans on September 5.