China Paper Industry Report Year 2003
中国造纸协会第二届第五次常务理事会会议文件五
China Paper Industry Report Year 2003
By China Paper Association April 2004
1. Production & Consumption of Paper & Paperboard Surveys of the China Paper Association showed that there were 3,500 paper and paperboard producers in the country with combined production of 43 million metric tons in 2003 (+13.76% from the 37.80 million metric tons in 2002). During the year, 48.06 million metric tons of paper and paperboard were consumed, up 10.94% from the previous year and 37 kilos per person by average of the nation’s population. Production & Consumption (In million m/t) Newsprint Printing & writing paper - Coated paper Tissue paper Packaging paper Box board - Coated boxboard Linerboard Medim - High performance Specialty paper
2003 2.07 9.60 2.40 3.47 4.80 5.50 5.10 6.80 6.70 2.30 0.80
Production 2002 Change% 1.85 11.89% 9.20 4.35% 1.80 33.33% 3.10 11.94% 4.00 20.00% 4.60 19.57% 4.30 18.60% 6.00 13.33% 6.00 11.67% 1.90 21.05% 0.70 14.29%
2003 2.41 9.73 2.98 3.28 5.04 6.45 6.03 7.96 8.02 3.62 1.09
Consumption 2002 Change% 2.04 17.90% 9.37 3.84% 2.76 7.97% 2.97 10.44% 4.29 17.48% 5.36 20.34% 5.08 18.60% 7.25 9.79% 7.30 9.86% 3.2 13.13% 1.08 0.93%
Source: China Paper Association
In summary, both the production and consumption maintained their growth momentum. In production, most significant increase was in newsprint, uncoated printing paper, writing paper, coated art paper, tissue, packaging paper, coated boxboard, linerboard and high-performance medium. In consumption, most significant increase was in newsprint, printing paper, writing paper, coated art paper, tissue, packaging paper, coated boxboard and high-performance medium.
2. Employment, Assets and Earnings There were 2,766 pulp, paper and paperboard producers with individual sales at or above RMB5 million/year, according to China National Statistics Bureau. This was 179 more than the previous year. However, employment of these companies fell 10,800 to 767,700 people. Combined asset of these companies was RMB253.7 billion*, up 13.25% from the previous year. At current price, industrial output value rose 22.25% to RMB170.9 billion. *RMB8.277 = US$1
1
Product sales rose 25.96% to RMB166.1 billion, which was 98.62% of production (+1.35%). Earnings before interest and tax totaled RMB16.15 billion (+15.27%) and net earnings at RMB8.51 billion (+16.9%). Total industry liability/asset ratio was 64.47%, up 0.4% from the previous year. Liability totaled RMB163.58 billion, up 13.9% from the previous year. Among the 2,766 companies surveyed, 539 (19.49%) were at loss, down 0.51% from the previous year.
3. Paper Grade Pulp Production & Consumption National paper grade pulp consumption in 2003 totaled 39.10 million metric tons, up 12.68% from the previous year. By grades, wood pulp consumption rose 10.81% to 8.20 million metric tons and accounting continuously for 21% in the total fiber consumption. Non-wood pulp consumption rose 5.41% to 11.70 million metric tons but dropped by 2% to 30% in the total fiber consumption. Waste paper pulp consumption surged 18.52% to 19.20 million metric tons and gained 2% to account for 49% in the total fiber consumption. In wood pulp consumption, imported market pulp rose 0.4% to the equivalent reduction in domestic production. In waste paper pulp, production by imported waste paper rose 3% over 1% reduction in production from local waste paper. In non-wood pulp consumption, bamboo rose 0.2%, but straw pulp fell 1.6%. Reed pulp also dropped 0.6% from the previous year. The above showed that while increase in national consumption of paper grade pulp in response to the growth in paper and board production, non-wood fiber consumption was falling and waste paper pulp consumption was rising. Fiber formation was improving.
4. Import & Export In 2003, a total of 6.35 million metric tons of paper and paperboard was imported into China, down 0.35% from 2002. At the same time, 1.29 million metric tons of paper and paperboard were exported, up 51.04%. *RMB8.277 = US$1
2
During the year, 6.03 million metric tons of paper grade market pulp was imported, up 14.61% from the previous year, and 25,000 metric tons were exported, up 30.73%. Waste paper import rose 36.51% to 9.38 million metric tons vs. the export of 1,100 metric tons (+57.14%). Import of converted paper products fell 5.36% to 230,000 metric tons and export gained 20.81% to 1.07 million metric tons. Combined import of paper, paperboard, market pulp, waste paper and converted products totaled 21.99 million metric tons, up 17.30% from the 18.75 million metric tons in 2002 and at the total cost of US$8.23 billion (+17% from the US$7.04 billion in 2002). The averaged import cost of paper and paperboard in 2003 was US$598.6 per metric ton, up 4.43% from 2002. Averaged imported cost of market pulp was US$440.99 per metric tons, up 7.11% from 2002. Averaged imported cost of waste paper was US$131.2 per metric ton, up 23.19% from the previous year. By import value, the paper industry ranked 3 rd in the nation after the petroleum and steel industries. Import of newsprint and coated boxboard grew the most, with a 76.36% gain in newsprint in particular. On the other hand, import of coated art paper and packaging paperboard fell significantly. In export, newsprint, printing and writing paper, coated art paper, coated boxboard, cigarette paper and tissue made much headway. The imported of fiber – market pulp and waste paper – continued its growth momentum.
5. Production by geography Paper
and
paperboard
production
in
almost
all
provinces
and
municipalities increased, except that of Hebei, Jiangxi, Hubei, Guangxi, Guizhou, Qinghai and Hainan. The leading performers were Hunan (+40.67%), Anhui (+35.41%), Guangdong (+32.35%), Shaanxi (+31.96%), Shandong (+28.12%) and Zhejiang (+21.17%). Provinces whose individual production over 1 million metric tons were Shandong, Zhejiang, Guangdong, Henan, Jiangsu, Hebei, Fujian, Hunan and *RMB8.277 = US$1
3
Sichuan. Combined production of these provinces reached 34.02 million metric tons and accounted for 83% of the national output. In 2003, paper and paperboard production in the 12 eastern provinces and municipalities accounted for 72.5% of the national total, up 0.5% from that of 2002. The 9 provinces and municipalities in central China accounted for 21.8% of the national total, down 0.2% from 2002 and the 9 provinces and municipalities in west China accounted for 5.7% of the national total, down 0.3% from 2002. As consolidation continues, east China has emerged as the main paper and paperboard production area of the country. In 2003, there were 2 producers whose individual output exceeded 1 million metric tons: Shandong Chenming Paper Corporation produced 1.27 million metric tons and Jindong Paper Corporation produced 1.21 million metric tons.
6. Performance By Different Equity Structures Among the 2,766 companies whose individual sales over RMB5 million/year, 14.06% were owned or majority held by the state, down 3.74% from 2002, 9.04% were under Sino-foreign JV or 100% foreign ownership, up 0.94% and 76.90% were collectively or privately owned, up 2.8% from 2002. By revenue, 29.23% came from state-owned or state-held companies, down 2.17% from 2002, 31.18% from JV or 100% foreign owned operations, up 0.88% from 2002 and 39.59% from collectively or privately owned companies, up 1.29% from 2002. By earnings before interest and tax, state-owned or held enterprises contributed 31.12% (-2.88% from 2002), JV and 100% foreign ownerships accounted for 36.74% (+0.14%) and collective-private owned operations took up 32.14% (2.74% from 2002). By net earnings, state-owned and held took up 27.33%, JV and foreign ownerships accounted for 43.24% and the balance went to collective-private owned operations. *RMB8.277 = US$1
4
This confirmed the changes in equity structure in the industry. Although JV and foreign owned companies only accounted for 9.04% in number, they took up more than 30% of industry sales, earnings before interest and tax and net earnings respectively. Their progress in production, product development and market shares enabled them remarkable economic returns.
7. Environmental Protection The key focus of the industry in environmental protection is waste fluid treatment. According to National Environmental Protection Bureau, the industry’s waste fluid emission totaled 3.19 billion metric tons in 2002, accounting for 17.4% of the national total. Of the 3.19 billion metric tons, 2.69 billion metric tons (84.3%) of emission met with environmental requirements, up 5.3% from the previous year. COD emission totaled 1.64 million metric tons, accounting for 35.3% of the nation’s industry wastewater emission total but down 5.5% from the previous year. The rate of chemical oxygen demand (COD) per RMB10,000 production value of the industry in the past 5 years dropped significantly from 0.462 metric ton/RMB10,000 in 1998 to 0.121 metric tons/RMB10,000 in 2002, thanks to the stepped-up efforts in pollution control. In conclusion, China’s paper industry went through the challenges of economic and industry slow-downs in the global arena and SARS disease, tight supplies in fiber, coal, electricity, oil and transportation equipment domestically in 2003. The huge rise in fiber cost added to the paper and paperboard production cost and reduced industry earnings in a market where it was difficult to raise finished product prices under severe competition. In spite of these challenges, many Chinese producers were able to grasp the opportunities created by the government’s policy to grow domestic consumption and speed up economic progress. By solving the difficulties, stepping up technological and structural changes, greater emphases in environmental protection, many producers were able to achieve remarkable
*RMB8.277 = US$1
5
production and sales results. This ensured the smooth and fast growth of the industry, which was in a lively market but more competitive environment.
China's Paper & Paper Board Production & Consumption Production Consumption (In 000 metric tons)
Total 1. Newsprint 2. Uncoated Printing & Writing - Printing Paper - Writing Paper 3. Coated Printing & Writing Coated Art Paper 4. Tissue 5. Packaging Paper 6. Boxboard - Coated Boxboard 7. Linerboard 8. Corrugating medium - High-performance 9. Specialty Paper 10. Others
2002
2003
Change%
2002
2003
Change%
37,800.00 1,850.00 9,200.00 4,200.00 1,800.00 1,800.00 1,600.00 3,100.00 4,000.00 4,600.00 4,300.00 6,000.00 6,000.00 1,900.00 700.00 550.00
43,000.00 2,070.00 9,600.00 5,200.00 2,500.00 2,400.00 2,100.00 3,470.00 4,800.00 5,500.00 5,100.00 6,800.00 6,700.00 2,300.00 800.00 860.00
13.76% 11.89% 4.35% 23.81% 38.89% 33.33% 31.25% 11.94% 20.00% 19.57% 18.60% 13.33% 11.67% 21.05% 14.29% 56.36%
43,320.00 2,040.00 9,370.00 4,360.00 1,800.00 2,760.00 2,030.00 2,970.00 4,290.00 5,360.00 5,040.00 7,250.00 7,300.00 3,200.00 1,080.00 900.00
48,060.00 2,410.00 9,730.00 5,340.00 2,500.00 2,980.00 2,270.00 3,280.00 5,040.00 6,450.00 6,030.00 7,960.00 8,020.00 3,620.00 1,090.00 1,100.00
10.94% 18.14% 3.84% 22.48% 38.89% 7.97% 11.82% 10.44% 17.48% 20.34% 19.64% 9.79% 9.86% 13.13% 0.93% 22.22%
Source: China Paper Association
Paper & Paperbaord Production By Month 5,000
In 000 M/T
4,000 3,000 2,000 1,000 0
Jan
Feb
M ar Apr M ay
Jun
Jul
Aug Sep
Oct
Nov Dec
2003 Paper & Board 2,726 2,597 3,328 3,408 3,327 3,654 3,459 3,555 3,613 3,725 3,834 3,945 Production 2002 Paper & Board 2,316 2,126 2,677 2,856 2,900 3,040 2,804 2,834 3,184 3,068 3,242 3,958 Production
Source: China Paper Association
*RMB8.277 = US$1
6
China's Paper, Paperboard & Fiber Import 2002 2003 (In 000 metric tons) Market Pulp 5,264.90 6,034.00 Waste Paper 6,872.60 9,381.80 Paper & Paperboard 6,369.40 6,347.10 Newsprint 199.20 351.30 Uncoated Printing & Writing 365.00 394.10 Coated Printing & Writing 1,217.70 1,010.00 - Coated Art Paper 614.80 523.40 Packaging Paper 313.70 278.70 Linerboard 1,254.40 1,171.80 - Coated Linerboard 43.90 45.60 Boxboard 814.80 1,042.60 - Coated boxboard 795.80 1,029.20 Tissue Paper 33.20 36.40 Corrugating medium 1,334.80 1,349.00 Cigarette Paper 10.80 12.20 Specialty Paper & Board 480.70 441.00 Other Paper & Board 345.10 260.00 Converted Paper Products 238.90 226.10 Total 18,745.80 21,989.00
Change% 14.61% 36.51% -0.35% 76.36% 7.97% -17.06% -14.87% -11.16% -6.58% 3.87% 27.96% 29.33% 9.64% 1.06% 12.96% -8.26% -24.66% -5.36% 17.30%
Source: China Customs Administration
China's Paper & Board Import By Month 800
In 000 M/T
600 400 200 0
Jan
Feb
Mar
Apr
May
Jun
Jul
2003 Paper & Board Import 500
380
610
635
590
533
523 500
2002 Paper & Board Import 513
296
606
629
600
620
651 570
Source: China Paper Association
*RMB8.277 = US$1
7
Aug Sep
Oct
Nov
Dec
540
495
480
580
530
450
440
462
China's Pulp Import By Month
In 000 M/T
800 600 400 200 0
Jan Feb Mar Apr Ma Jun Jul Au Se Oct Nov De
2003 Pulp Import 580 480 550 460 480 400 400 500 640 610 490 440 2002 Pulp Import 510 370 430 470 420 420 510 520 430 360 390 440 Source: China Paper Association
China's Paper, Paperboard & Fiber Export 2002 2003 (In 000 metric tons) Market Pulp 19.20 25.10 Waste Paper 7.00 11.00 Paper & Paperboard 854.70 1,290.90 Newsprint 6.00 11.90 Uncoated Printing & Writing 195.10 259.30 Coated Printing & Writing 251.80 433.10 - Coated Art Paper 186.70 353.00 Packaging Paper 26.30 38.00 Linerboard 6.70 17.10 Boxboard 55.10 94.90 - Coated Boxboard 55.10 94.90 Tissue Paper 158.80 229.80 Corrugating Medium 32.60 30.20 Cigarette Paper 7.00 9.70 Specialty Paper 96.00 149.20 Other Paper & Board 19.40 177.00 Converted Paper Products 882.80 10,665.00 Total 1,757.40 2,383.60 Source: China Customs Administration
*RMB8.277 = US$1
9
Change % 30.73% 57.14% 51.04% 98.33% 32.91% 72.00% 89.07% 44.49% 155.22% 72.23% 72.23% 44.71% -7.36% 38.57% 55.42% 812.37% 1108.09% 35.63%
China's Paper Grade Fiber Consumption (In 000 metric tons) 2002 Share of Total % 2003 Share of Total % Total 34,700.00 100 39,100.00 100 Wood Pulp 7,400.00 21 8,200.00 21 Waste Paper 16,200.00 47 19,200.00 49 Non-wood Pulp 11,100.00 32 11,700.00 30 Source: China Paper Association
Change % 12.68% 10.81% 18.52% 5.41%
Leading Paper & Board Production Provinces (In 000 metric tons) 2002 2003 Change% 1. Shandong 6,660 8,530 28.1% 2. Zhejiang 4,960 6,010 21.2% 3. Guangdong 4,100 5,430 32.4% 4. Henan 3,550 4,200 18.3% 5. Jiangsu 3,150 3,390 7.6% 6. Hebei 2,880 2,750 -4.5% 17.1% 7. Fujian 1,230 1,440 8. Hubei 1,030 n/a n/a 9. Hunan n/a 1,250 n/a 10. Sichuan n/a 1,020 n/a Source: China Paper Association
Production By Key Regions* 2002 2003 (In 000 metric tons) Production Share% Production Share% 100% 41,170 100% Paper & board 35,010 72 29,830 72.5 East China 25,230 22 8,990 21.8 Central China 7,700 6 2,350 5.7 West China 2,080 *Only those whose individual sales exceed RMB5 million/year. Source: China National Statistics Bureau
*RMB8.277 = US$1
10
(In 000 M/T)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(In RMB000)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
The Top 20 Producers In 2003* Company Name Shandong Chenming Paper Co. Ltd. Jindong (Jiangsu) Paper Co. Ltd. Dongguan Nine Dragon Paper Co. Ltd. Shandong Sun Paper Corporation Shandong Huatai Paper Industry Co., Ltd. Dongguan Lee&man Paper Co. Ltd. Ningbo Zhonghua Paper Co. Ltd. Shandong Bohui Paper Industry Co., Ltd. Guangzhou Paper Corporation UPM-Kymmene (Changshu) Paper Industry Co., Ltd. Anhui Shanying Paper Co. Ltd. Hunan Yueyang Paper Group Co., Ltd. Jinhuasheng Paper (Suzhou) Co. Ltd. Ningxia Meili Paper Group Shandong Tralin Paper Corporation Fujian Nanping Paper Corporation Guangdong Zhongshan Rengo Hung Hing Paper Mft. Co. Ltd. Shandong (Linqing) Yinhe Paper Corporation Zhejiang Jingxing Paper Corporation Fujian Qingshan Paper Corporation *By information available. Source: China Paper Association
2002 2003 1043.30 1270.00 1113.00 1213.96 725.00 913.20 517.30 597.40 450.00 584.80 568.00 476.20 472.20 225.00 410.00 381.90 397.40 343.40 367.59 197.60 367.00 260.80 347.50 262.70 326.40 194.40 307.10 194.50 273.10 241.80 266.90 195.60 262.90 170.00 250.00 186.80 247.80 213.00 245.20
The Top 20 Companies In 2003 (By Sales)* 2003 Company Name Jindong Paper (Jiangsu) Corporation 7,375,000 Shandong Chenming Paper Co. Ltd. 7,274,960 Shandong Huatai Corporation 3,130,010 Shandong Sun Paper Corporation 2,874,000 Dongguan Nine Dragon Paper Co. Ltd. 2,537,700 Shandong Bohui Paper Corporation 2,517,610 Ningbo Zhonghua Paper Corporation 2,376,480 UPM-Kymmene (Changshu) Paper Industry Co., Ltd. 2,205,600 Shandong Tralin Paper Corporation 2,200,000 Yueyang Paper Group Co., Ltd. 2,154,180 Jinhuasheng Paper (Suzhou) Co. Ltd. 1,964,960 Guangzhou Paper Corporation 1,879,690 Ningxia Meili Paper Co. Ltd. 1,534,000 Hongta Renheng Paper Co., Ltd. 1,500,000 Shandong (Linqing) Yinhe Paper Co. Ltd. 1,429,180 Fujian Nanping Paper Corporation 1,363,410 Qingdao Haiwang Paper Corporation 1,092,000 Shandong Rizhao SSYMB Pulp & Paper Co., Ltd. 1,091,000 Guangdong Zhonshun Paper Group 1,000,000 Stora-Enso Suzhou Paper Co., Ltd. 971,970 *By information available. Source: China Paper Association
*RMB8.277 = US$1
13
Change% 21.73 9.07 25.96 15.48 29.96 -0.84 82.22 4.06 7.04 85.73 33.24 24.25 57.97 40.41 10.38 34.41 47.06 32.66 15.12
2002 Change% 6,012,590 23% 4,546,450 60% 2,363,100 32% 2,303,000 25% n.a n.a 1,300,000 94% 2,239,030 6% 2,060,300 7% 1,054,720 109% 1,527,340 41% 1,579,680 24% 1,261,020 49% 709,950 116% 1,476,570 2% 870,000 64% 1,174,890 16% 885,760 23% n.a n.a n.a n.a 921,840 5%
The Top 20 Companies In 2003 (By Earnings Before Interest & Tax)* (In RMB000) 2003 2002 Change% Company Name 1 Shandong Chenming Paper Co. Ltd. 1,369,900 1,033,930 32.49% 2 Jindong Paper (Jiangsu) Co. Ltd. 1,317,390 834,850 57.80% 3 Shandong Huatai Paper Industry Co., Ltd. 556,880 483,660 15.14% 4 Shandong Sun Paper Corporation 481,600 394,000 22.23% 5 360,000 Guangdong Zhuhai Renheng Paper Co. Ltd. 350,790 2.63% 6 Shandong Bohui Paper Industry Co., Ltd. 351,160 250,400 40.24% 7 Shandong Tralin Paper Corporation 351,100 151,550 131.67% 8 345,090 Dongguan Nine Dragon Paper Co. Ltd. n.a n.a 9 Hunan Yueyang Paper Group Co., Ltd. 269,620 229,320 17.57% 10 Shandong (Linqing) Yinhe Paper Corporation 210,270 139,150 51.11% 11 202,290 Guangzhou Paper Corporation 215,490 -6.13% 12 166,000 Henan Xinxiang Xinya (Group) Co. Ltd. 110,000 50.91% 13 Ningbo Zhonghua Paper Co. Ltd. 160,240 341,920 -53.14% 14 Mudanjiang Hengfeng Paper Co. Ltd. 151,720 96,030 57.99% 15 126,540 Heng An (Group) Asian Co. Ltd. n.a n.a 16 121,750 Zhejiang Jingxing Paper Corporation n.a n.a 17 Stora-Enso Paper (Suzhou) Co. Ltd. 112,860 98,590 14.47% 18 108,000 Shandong Lunan Paper 106,000 1.89% 19 Fujian Nanping Paper Corporation 101,860 202,000 -49.57% 20 Guangdong Zhongshun Paper Co. Ltd. 101,000 n.a n.a *By information available. Source: China Paper Association
(In RMB000)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Top 20 Companies In 2003 (By Net Earnings)* 2003 Company Name Shandong Chenming Paper Co. Ltd. 949,760 Jindong Paper (Jiangsu) Co. Ltd. 764,710 Shandong Huatai Paper Industry Co., Ltd. 421,170 Shandong Sun Paper Corporation 341,200 Shandong Bohui Paper Industry Co., Ltd. 282,160 Shandong Tralin Paper Corporation 224,300 Dongguan Nine Dragon Paper Co. Ltd. 150,790 Hongta Renheng Paper Co., Ltd. 140,000 Shandong (Linqing) Yinhe Paper Corporation 127,210 Hunan Yueyang Paper Group Co., Ltd. 125,580 Heng An (Group) Asian Co. Ltd. 124,270 Henan Xinxiang Xinya (Group) Co. Ltd. 124,000 Mudanjiang Hengfeng Paper Co. Ltd. 101,410 Minfeng (Group) Co. Ltd. 99,630 Guangzhou Paper Corporation 79,690 Shandong Rizhao SSYMB Pulp & Paper Co., Ltd. 74,000 Shandong Huajin (Group) Co. Ltd. 71,450 Zhejiang Jingxing Paper Corporation 70,870 Zhongshun Paper Group 68,000 Ningxia Meili Paper Co. Ltd. 59,200 *By information available. Source: China Paper Association.
*RMB8.277 = US$1
15
2002 731,760 618,850 352,660 287,000 183,800 91,770 n.a 184,810 85,000 105,570 n.a 89,000 53,550 67,050 80,890 n.a 63,400 70,100 n.a 48,500
Change% 29.79% 23.57% 19.43% 18.89% 53.51% 144.42% n.a -24.25% 49.66% 18.95% n.a 39.33% 89.37% 48.59% -1.48% n.a 12.70% 1.10% n.a 22.06%
China Paper Industry Report Year 2003
By China Paper Association April 2004
1. Production & Consumption of Paper & Paperboard Surveys of the China Paper Association showed that there were 3,500 paper and paperboard producers in the country with combined production of 43 million metric tons in 2003 (+13.76% from the 37.80 million metric tons in 2002). During the year, 48.06 million metric tons of paper and paperboard were consumed, up 10.94% from the previous year and 37 kilos per person by average of the nation’s population. Production & Consumption (In million m/t) Newsprint Printing & writing paper - Coated paper Tissue paper Packaging paper Box board - Coated boxboard Linerboard Medim - High performance Specialty paper
2003 2.07 9.60 2.40 3.47 4.80 5.50 5.10 6.80 6.70 2.30 0.80
Production 2002 Change% 1.85 11.89% 9.20 4.35% 1.80 33.33% 3.10 11.94% 4.00 20.00% 4.60 19.57% 4.30 18.60% 6.00 13.33% 6.00 11.67% 1.90 21.05% 0.70 14.29%
2003 2.41 9.73 2.98 3.28 5.04 6.45 6.03 7.96 8.02 3.62 1.09
Consumption 2002 Change% 2.04 17.90% 9.37 3.84% 2.76 7.97% 2.97 10.44% 4.29 17.48% 5.36 20.34% 5.08 18.60% 7.25 9.79% 7.30 9.86% 3.2 13.13% 1.08 0.93%
Source: China Paper Association
In summary, both the production and consumption maintained their growth momentum. In production, most significant increase was in newsprint, uncoated printing paper, writing paper, coated art paper, tissue, packaging paper, coated boxboard, linerboard and high-performance medium. In consumption, most significant increase was in newsprint, printing paper, writing paper, coated art paper, tissue, packaging paper, coated boxboard and high-performance medium.
2. Employment, Assets and Earnings There were 2,766 pulp, paper and paperboard producers with individual sales at or above RMB5 million/year, according to China National Statistics Bureau. This was 179 more than the previous year. However, employment of these companies fell 10,800 to 767,700 people. Combined asset of these companies was RMB253.7 billion*, up 13.25% from the previous year. At current price, industrial output value rose 22.25% to RMB170.9 billion. *RMB8.277 = US$1
1
Product sales rose 25.96% to RMB166.1 billion, which was 98.62% of production (+1.35%). Earnings before interest and tax totaled RMB16.15 billion (+15.27%) and net earnings at RMB8.51 billion (+16.9%). Total industry liability/asset ratio was 64.47%, up 0.4% from the previous year. Liability totaled RMB163.58 billion, up 13.9% from the previous year. Among the 2,766 companies surveyed, 539 (19.49%) were at loss, down 0.51% from the previous year.
3. Paper Grade Pulp Production & Consumption National paper grade pulp consumption in 2003 totaled 39.10 million metric tons, up 12.68% from the previous year. By grades, wood pulp consumption rose 10.81% to 8.20 million metric tons and accounting continuously for 21% in the total fiber consumption. Non-wood pulp consumption rose 5.41% to 11.70 million metric tons but dropped by 2% to 30% in the total fiber consumption. Waste paper pulp consumption surged 18.52% to 19.20 million metric tons and gained 2% to account for 49% in the total fiber consumption. In wood pulp consumption, imported market pulp rose 0.4% to the equivalent reduction in domestic production. In waste paper pulp, production by imported waste paper rose 3% over 1% reduction in production from local waste paper. In non-wood pulp consumption, bamboo rose 0.2%, but straw pulp fell 1.6%. Reed pulp also dropped 0.6% from the previous year. The above showed that while increase in national consumption of paper grade pulp in response to the growth in paper and board production, non-wood fiber consumption was falling and waste paper pulp consumption was rising. Fiber formation was improving.
4. Import & Export In 2003, a total of 6.35 million metric tons of paper and paperboard was imported into China, down 0.35% from 2002. At the same time, 1.29 million metric tons of paper and paperboard were exported, up 51.04%. *RMB8.277 = US$1
2
During the year, 6.03 million metric tons of paper grade market pulp was imported, up 14.61% from the previous year, and 25,000 metric tons were exported, up 30.73%. Waste paper import rose 36.51% to 9.38 million metric tons vs. the export of 1,100 metric tons (+57.14%). Import of converted paper products fell 5.36% to 230,000 metric tons and export gained 20.81% to 1.07 million metric tons. Combined import of paper, paperboard, market pulp, waste paper and converted products totaled 21.99 million metric tons, up 17.30% from the 18.75 million metric tons in 2002 and at the total cost of US$8.23 billion (+17% from the US$7.04 billion in 2002). The averaged import cost of paper and paperboard in 2003 was US$598.6 per metric ton, up 4.43% from 2002. Averaged imported cost of market pulp was US$440.99 per metric tons, up 7.11% from 2002. Averaged imported cost of waste paper was US$131.2 per metric ton, up 23.19% from the previous year. By import value, the paper industry ranked 3 rd in the nation after the petroleum and steel industries. Import of newsprint and coated boxboard grew the most, with a 76.36% gain in newsprint in particular. On the other hand, import of coated art paper and packaging paperboard fell significantly. In export, newsprint, printing and writing paper, coated art paper, coated boxboard, cigarette paper and tissue made much headway. The imported of fiber – market pulp and waste paper – continued its growth momentum.
5. Production by geography Paper
and
paperboard
production
in
almost
all
provinces
and
municipalities increased, except that of Hebei, Jiangxi, Hubei, Guangxi, Guizhou, Qinghai and Hainan. The leading performers were Hunan (+40.67%), Anhui (+35.41%), Guangdong (+32.35%), Shaanxi (+31.96%), Shandong (+28.12%) and Zhejiang (+21.17%). Provinces whose individual production over 1 million metric tons were Shandong, Zhejiang, Guangdong, Henan, Jiangsu, Hebei, Fujian, Hunan and *RMB8.277 = US$1
3
Sichuan. Combined production of these provinces reached 34.02 million metric tons and accounted for 83% of the national output. In 2003, paper and paperboard production in the 12 eastern provinces and municipalities accounted for 72.5% of the national total, up 0.5% from that of 2002. The 9 provinces and municipalities in central China accounted for 21.8% of the national total, down 0.2% from 2002 and the 9 provinces and municipalities in west China accounted for 5.7% of the national total, down 0.3% from 2002. As consolidation continues, east China has emerged as the main paper and paperboard production area of the country. In 2003, there were 2 producers whose individual output exceeded 1 million metric tons: Shandong Chenming Paper Corporation produced 1.27 million metric tons and Jindong Paper Corporation produced 1.21 million metric tons.
6. Performance By Different Equity Structures Among the 2,766 companies whose individual sales over RMB5 million/year, 14.06% were owned or majority held by the state, down 3.74% from 2002, 9.04% were under Sino-foreign JV or 100% foreign ownership, up 0.94% and 76.90% were collectively or privately owned, up 2.8% from 2002. By revenue, 29.23% came from state-owned or state-held companies, down 2.17% from 2002, 31.18% from JV or 100% foreign owned operations, up 0.88% from 2002 and 39.59% from collectively or privately owned companies, up 1.29% from 2002. By earnings before interest and tax, state-owned or held enterprises contributed 31.12% (-2.88% from 2002), JV and 100% foreign ownerships accounted for 36.74% (+0.14%) and collective-private owned operations took up 32.14% (2.74% from 2002). By net earnings, state-owned and held took up 27.33%, JV and foreign ownerships accounted for 43.24% and the balance went to collective-private owned operations. *RMB8.277 = US$1
4
This confirmed the changes in equity structure in the industry. Although JV and foreign owned companies only accounted for 9.04% in number, they took up more than 30% of industry sales, earnings before interest and tax and net earnings respectively. Their progress in production, product development and market shares enabled them remarkable economic returns.
7. Environmental Protection The key focus of the industry in environmental protection is waste fluid treatment. According to National Environmental Protection Bureau, the industry’s waste fluid emission totaled 3.19 billion metric tons in 2002, accounting for 17.4% of the national total. Of the 3.19 billion metric tons, 2.69 billion metric tons (84.3%) of emission met with environmental requirements, up 5.3% from the previous year. COD emission totaled 1.64 million metric tons, accounting for 35.3% of the nation’s industry wastewater emission total but down 5.5% from the previous year. The rate of chemical oxygen demand (COD) per RMB10,000 production value of the industry in the past 5 years dropped significantly from 0.462 metric ton/RMB10,000 in 1998 to 0.121 metric tons/RMB10,000 in 2002, thanks to the stepped-up efforts in pollution control. In conclusion, China’s paper industry went through the challenges of economic and industry slow-downs in the global arena and SARS disease, tight supplies in fiber, coal, electricity, oil and transportation equipment domestically in 2003. The huge rise in fiber cost added to the paper and paperboard production cost and reduced industry earnings in a market where it was difficult to raise finished product prices under severe competition. In spite of these challenges, many Chinese producers were able to grasp the opportunities created by the government’s policy to grow domestic consumption and speed up economic progress. By solving the difficulties, stepping up technological and structural changes, greater emphases in environmental protection, many producers were able to achieve remarkable
*RMB8.277 = US$1
5
production and sales results. This ensured the smooth and fast growth of the industry, which was in a lively market but more competitive environment.
China's Paper & Paper Board Production & Consumption Production Consumption (In 000 metric tons)
Total 1. Newsprint 2. Uncoated Printing & Writing - Printing Paper - Writing Paper 3. Coated Printing & Writing Coated Art Paper 4. Tissue 5. Packaging Paper 6. Boxboard - Coated Boxboard 7. Linerboard 8. Corrugating medium - High-performance 9. Specialty Paper 10. Others
2002
2003
Change%
2002
2003
Change%
37,800.00 1,850.00 9,200.00 4,200.00 1,800.00 1,800.00 1,600.00 3,100.00 4,000.00 4,600.00 4,300.00 6,000.00 6,000.00 1,900.00 700.00 550.00
43,000.00 2,070.00 9,600.00 5,200.00 2,500.00 2,400.00 2,100.00 3,470.00 4,800.00 5,500.00 5,100.00 6,800.00 6,700.00 2,300.00 800.00 860.00
13.76% 11.89% 4.35% 23.81% 38.89% 33.33% 31.25% 11.94% 20.00% 19.57% 18.60% 13.33% 11.67% 21.05% 14.29% 56.36%
43,320.00 2,040.00 9,370.00 4,360.00 1,800.00 2,760.00 2,030.00 2,970.00 4,290.00 5,360.00 5,040.00 7,250.00 7,300.00 3,200.00 1,080.00 900.00
48,060.00 2,410.00 9,730.00 5,340.00 2,500.00 2,980.00 2,270.00 3,280.00 5,040.00 6,450.00 6,030.00 7,960.00 8,020.00 3,620.00 1,090.00 1,100.00
10.94% 18.14% 3.84% 22.48% 38.89% 7.97% 11.82% 10.44% 17.48% 20.34% 19.64% 9.79% 9.86% 13.13% 0.93% 22.22%
Source: China Paper Association
Paper & Paperbaord Production By Month 5,000
In 000 M/T
4,000 3,000 2,000 1,000 0
Jan
Feb
M ar Apr M ay
Jun
Jul
Aug Sep
Oct
Nov Dec
2003 Paper & Board 2,726 2,597 3,328 3,408 3,327 3,654 3,459 3,555 3,613 3,725 3,834 3,945 Production 2002 Paper & Board 2,316 2,126 2,677 2,856 2,900 3,040 2,804 2,834 3,184 3,068 3,242 3,958 Production
Source: China Paper Association
*RMB8.277 = US$1
6
China's Paper, Paperboard & Fiber Import 2002 2003 (In 000 metric tons) Market Pulp 5,264.90 6,034.00 Waste Paper 6,872.60 9,381.80 Paper & Paperboard 6,369.40 6,347.10 Newsprint 199.20 351.30 Uncoated Printing & Writing 365.00 394.10 Coated Printing & Writing 1,217.70 1,010.00 - Coated Art Paper 614.80 523.40 Packaging Paper 313.70 278.70 Linerboard 1,254.40 1,171.80 - Coated Linerboard 43.90 45.60 Boxboard 814.80 1,042.60 - Coated boxboard 795.80 1,029.20 Tissue Paper 33.20 36.40 Corrugating medium 1,334.80 1,349.00 Cigarette Paper 10.80 12.20 Specialty Paper & Board 480.70 441.00 Other Paper & Board 345.10 260.00 Converted Paper Products 238.90 226.10 Total 18,745.80 21,989.00
Change% 14.61% 36.51% -0.35% 76.36% 7.97% -17.06% -14.87% -11.16% -6.58% 3.87% 27.96% 29.33% 9.64% 1.06% 12.96% -8.26% -24.66% -5.36% 17.30%
Source: China Customs Administration
China's Paper & Board Import By Month 800
In 000 M/T
600 400 200 0
Jan
Feb
Mar
Apr
May
Jun
Jul
2003 Paper & Board Import 500
380
610
635
590
533
523 500
2002 Paper & Board Import 513
296
606
629
600
620
651 570
Source: China Paper Association
*RMB8.277 = US$1
7
Aug Sep
Oct
Nov
Dec
540
495
480
580
530
450
440
462
China's Pulp Import By Month
In 000 M/T
800 600 400 200 0
Jan Feb Mar Apr Ma Jun Jul Au Se Oct Nov De
2003 Pulp Import 580 480 550 460 480 400 400 500 640 610 490 440 2002 Pulp Import 510 370 430 470 420 420 510 520 430 360 390 440 Source: China Paper Association
China's Paper, Paperboard & Fiber Export 2002 2003 (In 000 metric tons) Market Pulp 19.20 25.10 Waste Paper 7.00 11.00 Paper & Paperboard 854.70 1,290.90 Newsprint 6.00 11.90 Uncoated Printing & Writing 195.10 259.30 Coated Printing & Writing 251.80 433.10 - Coated Art Paper 186.70 353.00 Packaging Paper 26.30 38.00 Linerboard 6.70 17.10 Boxboard 55.10 94.90 - Coated Boxboard 55.10 94.90 Tissue Paper 158.80 229.80 Corrugating Medium 32.60 30.20 Cigarette Paper 7.00 9.70 Specialty Paper 96.00 149.20 Other Paper & Board 19.40 177.00 Converted Paper Products 882.80 10,665.00 Total 1,757.40 2,383.60 Source: China Customs Administration
*RMB8.277 = US$1
9
Change % 30.73% 57.14% 51.04% 98.33% 32.91% 72.00% 89.07% 44.49% 155.22% 72.23% 72.23% 44.71% -7.36% 38.57% 55.42% 812.37% 1108.09% 35.63%
China's Paper Grade Fiber Consumption (In 000 metric tons) 2002 Share of Total % 2003 Share of Total % Total 34,700.00 100 39,100.00 100 Wood Pulp 7,400.00 21 8,200.00 21 Waste Paper 16,200.00 47 19,200.00 49 Non-wood Pulp 11,100.00 32 11,700.00 30 Source: China Paper Association
Change % 12.68% 10.81% 18.52% 5.41%
Leading Paper & Board Production Provinces (In 000 metric tons) 2002 2003 Change% 1. Shandong 6,660 8,530 28.1% 2. Zhejiang 4,960 6,010 21.2% 3. Guangdong 4,100 5,430 32.4% 4. Henan 3,550 4,200 18.3% 5. Jiangsu 3,150 3,390 7.6% 6. Hebei 2,880 2,750 -4.5% 17.1% 7. Fujian 1,230 1,440 8. Hubei 1,030 n/a n/a 9. Hunan n/a 1,250 n/a 10. Sichuan n/a 1,020 n/a Source: China Paper Association
Production By Key Regions* 2002 2003 (In 000 metric tons) Production Share% Production Share% 100% 41,170 100% Paper & board 35,010 72 29,830 72.5 East China 25,230 22 8,990 21.8 Central China 7,700 6 2,350 5.7 West China 2,080 *Only those whose individual sales exceed RMB5 million/year. Source: China National Statistics Bureau
*RMB8.277 = US$1
10
(In 000 M/T)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(In RMB000)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
The Top 20 Producers In 2003* Company Name Shandong Chenming Paper Co. Ltd. Jindong (Jiangsu) Paper Co. Ltd. Dongguan Nine Dragon Paper Co. Ltd. Shandong Sun Paper Corporation Shandong Huatai Paper Industry Co., Ltd. Dongguan Lee&man Paper Co. Ltd. Ningbo Zhonghua Paper Co. Ltd. Shandong Bohui Paper Industry Co., Ltd. Guangzhou Paper Corporation UPM-Kymmene (Changshu) Paper Industry Co., Ltd. Anhui Shanying Paper Co. Ltd. Hunan Yueyang Paper Group Co., Ltd. Jinhuasheng Paper (Suzhou) Co. Ltd. Ningxia Meili Paper Group Shandong Tralin Paper Corporation Fujian Nanping Paper Corporation Guangdong Zhongshan Rengo Hung Hing Paper Mft. Co. Ltd. Shandong (Linqing) Yinhe Paper Corporation Zhejiang Jingxing Paper Corporation Fujian Qingshan Paper Corporation *By information available. Source: China Paper Association
2002 2003 1043.30 1270.00 1113.00 1213.96 725.00 913.20 517.30 597.40 450.00 584.80 568.00 476.20 472.20 225.00 410.00 381.90 397.40 343.40 367.59 197.60 367.00 260.80 347.50 262.70 326.40 194.40 307.10 194.50 273.10 241.80 266.90 195.60 262.90 170.00 250.00 186.80 247.80 213.00 245.20
The Top 20 Companies In 2003 (By Sales)* 2003 Company Name Jindong Paper (Jiangsu) Corporation 7,375,000 Shandong Chenming Paper Co. Ltd. 7,274,960 Shandong Huatai Corporation 3,130,010 Shandong Sun Paper Corporation 2,874,000 Dongguan Nine Dragon Paper Co. Ltd. 2,537,700 Shandong Bohui Paper Corporation 2,517,610 Ningbo Zhonghua Paper Corporation 2,376,480 UPM-Kymmene (Changshu) Paper Industry Co., Ltd. 2,205,600 Shandong Tralin Paper Corporation 2,200,000 Yueyang Paper Group Co., Ltd. 2,154,180 Jinhuasheng Paper (Suzhou) Co. Ltd. 1,964,960 Guangzhou Paper Corporation 1,879,690 Ningxia Meili Paper Co. Ltd. 1,534,000 Hongta Renheng Paper Co., Ltd. 1,500,000 Shandong (Linqing) Yinhe Paper Co. Ltd. 1,429,180 Fujian Nanping Paper Corporation 1,363,410 Qingdao Haiwang Paper Corporation 1,092,000 Shandong Rizhao SSYMB Pulp & Paper Co., Ltd. 1,091,000 Guangdong Zhonshun Paper Group 1,000,000 Stora-Enso Suzhou Paper Co., Ltd. 971,970 *By information available. Source: China Paper Association
*RMB8.277 = US$1
13
Change% 21.73 9.07 25.96 15.48 29.96 -0.84 82.22 4.06 7.04 85.73 33.24 24.25 57.97 40.41 10.38 34.41 47.06 32.66 15.12
2002 Change% 6,012,590 23% 4,546,450 60% 2,363,100 32% 2,303,000 25% n.a n.a 1,300,000 94% 2,239,030 6% 2,060,300 7% 1,054,720 109% 1,527,340 41% 1,579,680 24% 1,261,020 49% 709,950 116% 1,476,570 2% 870,000 64% 1,174,890 16% 885,760 23% n.a n.a n.a n.a 921,840 5%
The Top 20 Companies In 2003 (By Earnings Before Interest & Tax)* (In RMB000) 2003 2002 Change% Company Name 1 Shandong Chenming Paper Co. Ltd. 1,369,900 1,033,930 32.49% 2 Jindong Paper (Jiangsu) Co. Ltd. 1,317,390 834,850 57.80% 3 Shandong Huatai Paper Industry Co., Ltd. 556,880 483,660 15.14% 4 Shandong Sun Paper Corporation 481,600 394,000 22.23% 5 360,000 Guangdong Zhuhai Renheng Paper Co. Ltd. 350,790 2.63% 6 Shandong Bohui Paper Industry Co., Ltd. 351,160 250,400 40.24% 7 Shandong Tralin Paper Corporation 351,100 151,550 131.67% 8 345,090 Dongguan Nine Dragon Paper Co. Ltd. n.a n.a 9 Hunan Yueyang Paper Group Co., Ltd. 269,620 229,320 17.57% 10 Shandong (Linqing) Yinhe Paper Corporation 210,270 139,150 51.11% 11 202,290 Guangzhou Paper Corporation 215,490 -6.13% 12 166,000 Henan Xinxiang Xinya (Group) Co. Ltd. 110,000 50.91% 13 Ningbo Zhonghua Paper Co. Ltd. 160,240 341,920 -53.14% 14 Mudanjiang Hengfeng Paper Co. Ltd. 151,720 96,030 57.99% 15 126,540 Heng An (Group) Asian Co. Ltd. n.a n.a 16 121,750 Zhejiang Jingxing Paper Corporation n.a n.a 17 Stora-Enso Paper (Suzhou) Co. Ltd. 112,860 98,590 14.47% 18 108,000 Shandong Lunan Paper 106,000 1.89% 19 Fujian Nanping Paper Corporation 101,860 202,000 -49.57% 20 Guangdong Zhongshun Paper Co. Ltd. 101,000 n.a n.a *By information available. Source: China Paper Association
(In RMB000)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Top 20 Companies In 2003 (By Net Earnings)* 2003 Company Name Shandong Chenming Paper Co. Ltd. 949,760 Jindong Paper (Jiangsu) Co. Ltd. 764,710 Shandong Huatai Paper Industry Co., Ltd. 421,170 Shandong Sun Paper Corporation 341,200 Shandong Bohui Paper Industry Co., Ltd. 282,160 Shandong Tralin Paper Corporation 224,300 Dongguan Nine Dragon Paper Co. Ltd. 150,790 Hongta Renheng Paper Co., Ltd. 140,000 Shandong (Linqing) Yinhe Paper Corporation 127,210 Hunan Yueyang Paper Group Co., Ltd. 125,580 Heng An (Group) Asian Co. Ltd. 124,270 Henan Xinxiang Xinya (Group) Co. Ltd. 124,000 Mudanjiang Hengfeng Paper Co. Ltd. 101,410 Minfeng (Group) Co. Ltd. 99,630 Guangzhou Paper Corporation 79,690 Shandong Rizhao SSYMB Pulp & Paper Co., Ltd. 74,000 Shandong Huajin (Group) Co. Ltd. 71,450 Zhejiang Jingxing Paper Corporation 70,870 Zhongshun Paper Group 68,000 Ningxia Meili Paper Co. Ltd. 59,200 *By information available. Source: China Paper Association.
*RMB8.277 = US$1
15
2002 731,760 618,850 352,660 287,000 183,800 91,770 n.a 184,810 85,000 105,570 n.a 89,000 53,550 67,050 80,890 n.a 63,400 70,100 n.a 48,500
Change% 29.79% 23.57% 19.43% 18.89% 53.51% 144.42% n.a -24.25% 49.66% 18.95% n.a 39.33% 89.37% 48.59% -1.48% n.a 12.70% 1.10% n.a 22.06%
