CCM Data & Primary Intelligence
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CCM Data & Primary Intelligence Description: It is the second edition report about SPCs production and consumption in China. China is now the top paper making and consumption country in the world by volume, however it is far from a powerful papermaking country which can be seen from the advanced paper equipment and high-end SPCs. In China, the best paper equipment and SPCs are imported or made by foreign enterprises in China and the application of SPCs in paper is lower than developed countries. Paper industry in China is now under the upgrading process. With more and more new and large equipments as well as new technology adopted and increasing demand of paper, the future of SPCs in China is promising. In this report, CCM focuses on following aspects: Major paper species production and consumption situation in China Major SPCs producer in China Competition between domestic producers and foreign/ joint ventures both in papermaking and SPCs’ production Major SPCs production situation in China Current technologies in papermaking and trends in the next five years SPCs consumption breakdown in each paper species by value and⎍ volume SPCs consumption trend in the next five years by volume Experts view on the trends of papers and SPCs in China Opportunities in SPCs industry This report can provide an overview of SPCs production and consumption as well as key players in China. Main content: No. Part I I-1 I-2 I-2-1 I-2-2 I-3 I-3-1 I-3-2 I-4 I-5 II II-1 II-1-1 II-1-2 II-1-3
Content Main content Executive summary Introduction and methodology Time and data scope Report scope SPCs Paper Grades Report objective Target Objectives Methodology List of definitions Key drivers and trends Change of fiber material structure Comparison between China and the world Historical fiber structure Governmental policy
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Page 0 1 3 3 3 3 5 6 6 7 8 10 14 15 15 16 16 Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence II-1-4 II-1-5 II-2 II-2-1 II-2-2 II-2-3 II-2-4 II-2-5 II-3 II-4 II-4-1 II-4-2 II-4-3 II-5 II-6 II-6-1 II-6-2 III III-1 III-2 III-2-1 III-2-2 III-2-3 IV IV-1 IV-2 IV-2-1 IV-2-2 IV-2-3 IV-3 IV-4 IV-4-1 IV-4-2 IV-4-3 IV-5 IV-5-1 IV-5-2 IV-5-3 IV-6 IV-6-1 IV-6-2 IV-6-3 IV-7 IV-8 V V-1 V-1-1 V-1-2
Impact of import wood pulp and waste paper Effects on SPCs Paper and paper board production in China Overall situation Newsprint Printing and writing paper Packaging Tissue Structure of paper grade Environmental issues Overall pollution situation in China Pollution situation in paper industry Policy on environmental protection in paper industry Concentration of paper & paper chemical industry New papermaking technologies and equipments Technologies Equipments and technologies imported Competitive landscape Competition in papermaking scenarios Competition in specialty paper chemical scenarios Situation of paper chemicals consumption Involvement of foreign companies Marketshare of foreign companies vs. chinese companies Cutting-edge technology developments New requirement of SPCs technology adoption roadmap Sizing technology Summary of sizing technology Internal sizing Surface sizing Retention and drainage technology Water treatment technology Overall situation Reusing of white water Technologies for white water reuse Deinking technology Introduction to the deinking technology Chemical deinking technology Biological enzyme deinking technology Coating technology Overall situation Preparation of coatings Coating methods Wet strength technology Dry strength technology Market situation of SPCs from 2005-2009 Chemical types Deinking chemicals Sizing agents
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17 19 22 22 23 24 25 26 27 28 28 30 31 35 37 37 41 43 43 47 47 48 53 59 60 62 62 62 65 66 68 68 69 69 70 70 71 72 73 73 74 76 79 79 81 82 86 93
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CCM Data & Primary Intelligence V-1-3 V-1-4 V-1-5 V-1-6 V-1-7 V-1-8 V-1-9 V-1-10 V-2 V-2-1 V-2-2 V-2-3 V-2-4 V-2-5 VI VI-1 VI-1-1 VI-1-2 VI-2 VI-2-1 VI-2-2 VI-2-3 VI-3 VI-4 VI-4-1 VI-4-2 VII VII-1 VII-2 VII-3
Coatings Wet strength additives Dry strength additives Brighteners Retention and drainage aids Biocides Defoamers Water treatment chemicals Paper grades Newsprint Printing and writing paper Packaging Tissue Other papers Market forecasts to 2014 Macro factors Economic, demographic and social fator Environment and policy Verification & questionnaires Aim and scope of the survey Key findings for papermaking Industry Key findings for SPCs industry Assumption Market forecast Forecast on paper & paperboard in China for 2010-2014 Forecast on SPCs in China for 2010-2014 Market opportunities and conclusion Key factors on SPCs in the next five years Market opportunities Conclusion
100 104 107 110 113 116 120 123 125 128 129 132 134 136 139 140 140 144 145 145 146 147 148 149 150 161 183 183 183 185
Executive summary: SPCs industry highly depends on papermaking industry, thus keeping the same development pace with papermaking industry. After several years’ fast development, China is now the largest manufacture and consumption country of paper, whose paper production and consumption will keep growing fast in the next five years, indicating the bright prospect of SPCs in China. The production and consumption are close to balance in China in recent years. In 2009, the production, import, export and consumption of paper and paperboard in China reached 86.40 million tonnes,XXX million tonnes, XXX million tonnes and XXX million tonnes respectively. The CAGR for the production and consumption of paper and paperboard during 2005 and 2009 was XXX% and XXX%, respectively. With the improvement of living standard and industrial level in China, the consumption of paper will definitely increase. Since 2008, the paper consumption per capita in China has exceeded the world average level.
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CCM Data & Primary Intelligence However, the paper and paperboard in China are mainly low end products such as white board, boxboard and corrugated medium, whose output accounts for XXX% of the total paper and paperboard output in China, Now paper industry in China is in the process of update, new technolgy and equipment are more and more widely adopted, which brings many opportunities to SPCs. In the next five years, boxboard, corrugated medium and printing & writing paper will be the fastest growing paper species. China has almost realized self-sufficiency in SPCs. Apart from local producers’ effort, foreign-funded enterprises also made great contributions to self-sufficiency situation in China. Foreign-funded enterprises have made up the shortage of local producers’ inefficient technique and service. Foreign enterprises have produced many SPCs in China for local large papermaking enterprises. Local SPCs producers also play an important role: they not only supply SPCs to middle and small papermaking enterprises but also try hard to develop high end SPCs as those foreign-owned enterprises in China. There is a long way for local SPCs producers to catch up with foreign ones. But the trend that local product will take up more market share in the future will not change. And domestic technique of SPCs has gradually caught up with foreign enterprises. The total consumption volume and consumption value of SPCs in 2009 was XXX million tonnes and USD XXX million, respectively. Sizing agents, coatings, water treatment chemicals, dry strength additives and wet strength additives are mostly consumed SPCs. Consumption volume of SPCs accounts for only XXX% of the paper and paperboard output which is much lower than that of the developed countries. Now most SPCs are ample in China except ASA and CPAM due to inefficient technique. Besides CSBR latex, the majority of adhesive are produced by the foreign or joint ventures in China. In the past five years, deinking agent, water treatment, retention and drainage aids and coatings are the fastest increaseing SPCs by consumption volume. With the fast developing paper industry in China, as well as domestic producers’ efforts on the research and development, in the next five years, almost all the SPCs market will enlarge, in which sizing agent, coatings and water treatment chemicals will be the most promising SPCs. Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.
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CCM Data & Primary Intelligence Sample pagesďźš II Key drivers and trends II-1 Change of fiber material structure II-1-2 Historical fiber structure Figure II-1-1 Consumption structure of pulp in China, 2004~2009 2009 2008 2007 2006 2005 2004 0%
20%
40% Waste paper pulp
60% Wood pulp
80%
100%
Non-w ood pulp
Source: CCM International
Waste paper in the raw material share keeps rising in recent years and has got to about 00% in 2009. II-1-4 Impact of import wood pulp and waste paper Figure II-1-2 Pulp supply in China, 2005~2009 50
million tonnes
40 30 20 10 0 2005
2006 Production
2007 Import
2008
2009
Export
Source: CCM International
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CCM Data & Primary Intelligence Figure II-1-3 Breakdown of structure of domestic made pulp for paper production, 2009 61.89%
23.38% 14.73% Wood pulp
Non-w ood pulp
Waste paper pulp
Source: CCM International
Figure II-1-4 Breakdown of structure of imported pulp for paper production, 2009 61.66%
Wood pulp
38.34% Waste paper pulp
Source: CCM International
…… Another significant impact from oversea is the increment of the 00000000. The import quantity of 0000000r increased from 0000 million tonnes in 2005 to about 0000 million tonnes in 2009. However, it is expected that …… Figure II-1-5 Percentage of imported waste paper among the total consumption of pulp for paper production in China, 2005~2009 30.00%
27.50%
25.00%
22.50%
20.00% 2005
2006
2007
2008
2009
Source: CCM International
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CCM Data & Primary Intelligence II-2 Paper and paper board production in China II-2-2 Newsprint
5
25.00%
4
20.00%
3
15.00%
2
10.00%
1
5.00%
0
Growth rate
Output and consumption, million tonnes
Figure II-2-4 Production and consumption of newsprint in China, 2005~2009
0.00% 2005 Output
2006
2007
Grow th rate of output Source: CCM International
2008 Consumption
2009
Grow th rate of consumption
In the next five years, the demand for newsprint will keep increasing in China. As the following factors attribute to the growing demand for newsprint in China: 9
Fast development of newspaper industry in China. Though new media such as website has greatly reduced newspaper market share in cities especially in the east of China, but in China, 0000% people are still living in rural areas where the new media are not so popular and people there have increasing demand for newspaper thanks to improving living conditions. In 2009, many news papers……
9
Low per capita consumption of newsprint in China. The increasing trend in demand will ……
Here is the trend for newsprint and its impact on SPCs. 9
Newsprint equipments in major producers have realized roboticized and large-scale production which will further depend on SPCs to ……
9
More and more newsprint producers adopt waste paper pulp instead of ……
II-3 Structure of paper grades Though output of each paper species has increasing in the past five years, the different developing rate among paper species results in the changing output structure annually. In output of China’s paper products, low-end products, such as corrugated medium and boxboard in packing, capture the largest share, which has enlarged year by year between 2005 and 2009.
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CCM Data & Primary Intelligence Figure II-3-1 Output structure of paper in China, 2005~2009
2009
2008
2007
2006
2005 0%
20% New sprint
40%
60%
Printing & w riting paper
80%
Packaging
Tissue
100%
Others
Source: CCM International
The output structure may not change much in the near future, but the trend may change in the future. The share of packaging may gradually reduce and that of …… Packaging is the now the fast developing paper species and newsprint ranks second. But in the near future, they may slow down and tissue may be the fastest developed paper in China, as the import slows down due to …… 9
The impact of economic crisis will continue for the ……
9
China has kept fast economic development ……
In the next five years, China’s GDP grow rate may remain at 00%, which will greatly support the paper consumption growth. Some paper products, such as …… II-4 Environmental issues II-4-1 Overall pollution situation in China Table II-4-1 Discharge volume of wastewater and COD, 2001~2008 Item
Waste water, billion tonnes Industrial
Year
COD, million tonnes
Domestic
Total
Industrial
Amino Nitrogen, million tonnes
Domestic
Total sewage
sewage
Industrial
Domestic
sewage
sewage
Total sewage
sewage
2001
0000
0000
0000
0000
0000
0000
0000
0000
0000
2002
0000
0000
0000
0000
0000
0000
0000
0000
0000
2003
0000
0000
0000
0000
0000
0000
0000
0000
0000
2004
0000
0000
0000
0000
0000
0000
0000
0000
0000
2005
0000
0000
0000
0000
0000
0000
0000
0000
0000
2006
0000
0000
0000
0000
0000
0000
0000
0000
0000
2007
0000
0000
0000
0000
0000
0000
0000
0000
0000
2008
0000
0000
0000
0000
0000
0000
0000
0000
0000
Source: China Environment Report, 2008.
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CCM Data & Primary Intelligence VI Market forecasts to 2014 VI-1 Macro factors Factors influencing SPCs industry are various, besides raw material supply and downstream deman…… Figure VI-1-1 Macro factors influencing SPCs industry 4
3
2
1
0 A B Source: CCM International
C
D
E
F
Note: the data in the figure indicate the importance of each option according to the feedback collected from XX exporters. 4=Very important
3=Important
2= less important
1= No important
A: Policy about energy saving, lower energy consumption and pollutants discharge reduction B: Policy about washing out outdated paper capacity C: Economic crisis D: RMB appreciation E: Substitutes of paper F: The price of crude oil
…… VI-4-1 Forecast on paper in China for 2010-2014 VI-4-1.1 Newsprint …… Figure 12 VI-4-1 Experts’ view on the growth rate of newsprint demand in China, 2010~2014
Numbers of view
10 8 6 4 2 0 -5%~-3% -2%~0%
0~2%
3%~5%
6%~8%
9%~10%
Above 10%
Source: CCM International
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