Frbiz Analyzes 2010 Paper Industry Dynamic

BEIJING, May 31 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, analyzes the 2010 paper industry dynamic.

Frbiz analyzes that from January-April in 2010, domestic paper and paperboard production were 31.28 million tons, year-on-year up 19.3%; April capacity is 8.45 million tons, year-on-year up 13.6%, and ring growth decreased 2.2%. April saw a monthly decline in the coated printing paper category, a small increase in newsprint, and other paper products are at significantly higher yields -- among them corrugated box, cardboard and other packaging products. This is mainly because the downstream demand increased and the exports followed.

Paper products import and export activity in March

March imports of pulp were 1.08 million tons, year-on-year down 0.9%, ring growth substantially increased 44.0%; the imported waster paper was 2.44 million tons, year-on-year increased 1.7%; ring growth reached 37%. March monthly imports of paper and paperboard were 370,000 tons, year-on-year increased 48.0%, ring growth increased 94%; exported paper and paperboard were 360,000 tons, year-on-year increased 33.3%, ring growth was 50.0%.

Frbiz analyzes that for the second quarter and second half-year, the recent drop in international commodity prices will recover, and the Chilean pulp mill will resume production, which may prevent the expected pulp prices from rising further. Paper prices are basically stable. Taking the second quarter pulp prices decline into account, it is still expected that the second quarter is likely to be the best quarter of the year for profit. For the second half of 2010, paper product prices will lose momentum. Taking into account some of the pressure supply of paper products (http://www.frbiz.com/catalog-24000000-1/packaging_paper.html ), profitability or gross margin has been difficult to expand, and a small decline should be expected.

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SOURCE Frbiz.com