Domestic newsprint prices continue to decline-Iota

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Service > Domestic newsprint prices continue to decline

Domestic newsprint prices continue to decline

2014 annual meeting of China Newspaper supplies learned that in 2014 the national newspaper paper consumption of 276 million tons, down 310,000 tons more than in 2013. Domestic newsprint prices continue to decline, in 2014 the average price of 4100 yuan / ton, compared with 2013 decreased by 250 yuan per ton.
From the international market
North American newsprint market downturn
In recent years, the global demand for newsprint market has been facing downward pressure. Deputy Secretary General of China Association of Newspapers Mr.Hu At this year's meeting theme of the report, said the North American newsprint market demand is growing at an annual average of 6% to 7% of the rate of decline.
According to statistics, in January 2014, the North American newsprint market, there are nearly 36 million tons of capacity out of the market. North American newsprint exports coupled with recent market downturn, especially in the Asian market, which is 2014 North American newsprint shipments even worse, leading to the North American newsprint eight months of 2014, the operating rate fell to 92%, the price continued to decline, currently trough is nearly three years.
"From the current North American newsprint market supply and demand, the continued capacity to adjust to market demand for newsprint is necessary." Huhuai Fu Road. According to the analysis of the relevant agencies on the North American newsprint production and demand structure of the current and projected future demand, by the end of 2014, the North American newsprint market will usher in a new round of capacity shut down or converting, newsprint production capacity is expected to be reduced by 25 million tons.
From the domestic market
Newsprint prices continued to run low
On the supply side, this year, due to the country's major newsprint mill in accordance with the needs of small and medium sized limited production and converting part of the newsprint mill, production, overall production dropped significantly compared to last year. According to the China Association of Newspapers statistics, domestic newsprint production of about 2.6 million tons, of which approximately 2.15 million tons production mill, small mill production of about 450,000 tons, production fell 30 percent over last year.
On the export side, from January to September, total exports of 71,000 tons of newsprint, expects total exports of 10 million tonnes, similar to last year; On the import side, imports are expected this year to 60,000 tons - 70,000 tons imported newsprint price is about 45 grams 4100 yuan / ton, the main source of imports in South Korea, the United States, Canada, also part of.
On the demand side, resulting in decline in newspaper advertising and Metropolis forum reduce circulation decline and other factors, resulting in declining newspaper newsprint purchases. Huhuai Fu said, according to the China Association of Newspapers across the country 75 large household paper newspaper in 2013, the 2014 survey data, this year than last year, an increase of 16 paper consumption, the rate of increase of 21% reduction has 44, reduce the rate of 58.7%, and 15 flat. "It's 75 newspapers in 2013 the total volume of 1.404 million tons of paper, in 2014 the total volume of 1.264 million tons of paper in 2014 decreased by 14 million tonnes less than in 2013, a decrease of 10%. In this data projections, 2014 National newspaper paper capacity of 2.76 million tons, compared with 310,000 tons in 2013 decreased. "
Due to the market last year, a serious oversupply of newsprint, newsprint products phased surplus, beginning of the year each mill and newspaper stocks are very large. Coupled with intensified competition in the market, the domestic economic slowdown, the main factors of production increases the cost of business, the state's environmental policy overall tighter and other reasons, rising newsprint production and operations costs, profit margins have been squeezed, the pressure also will further survival increased. "To this end, newsprint mill to increase promotional efforts, resulting in newsprint prices since last year, continued to run low, the industry is losing money overall, part of the strength of weak, poor adaptability newsprint manufacturers conversions, stop." Huhuai Fu said, according to China newspaper Association statistics, domestic newsprint prices continue to decline, the national average price has been reduced from 4350 yuan at the end of last year / ton to the current 4100 yuan / ton.
From newspaper type look
Middle-class newspaper to maintain steady growth
In 75 large household paper newspaper China Press Association monitored in this year than last year, paper consumption increased 16 units and 15 units of flat major newspaper is the central level, several northwest of the provincial party newspaper group, part of the municipal Newspapers.
In this regard, Hu Huaifu believe that this is mainly due to push the executive power, while the other provinces and major newspaper group decreased greatly, the main reason is all owned Daily Newspaper Group and other market-based newspaper advertising, circulation decline compared large, so the amount of paper have decreased substantially, the party newspaper paper consumption within the group is not affected, and some slight increase in overall paper consumption point of view, the Group continued to show a downward trend in the newspaper industry as a whole.
In the regional market, data from the China Association of Newspapers statistics can be seen in the six major regional newspapers are declining paper consumption, which dropped 8.83% in North China, Northeast China dropped 25.74 percent, 12.69 percent decline in east China, South Africa fell 8.46 percent, down 20% from the Southwest, Northwest dropped 11.65%. But the concern is the same as with the previous two years, six regional newspapers in the country have decreased the amount of paper, the central-level newspaper continued to maintain steady growth, the total paper grew 3.6 percent compared to last year.
Look from the market forecast
Declining demand will become the norm
2014 annual newsprint production is estimated at about 2.6 million tons, then the newsprint market in 2015 will be like? Hu Huaifu expected next year, changes in the market of newsprint While there are many uncertainties, but the market demand reduction has become a foregone conclusion.
Hu Huaifu analysis pointed out that the world economy continues to weaken due to the impact of macro-economic development of the situation will remain low levels, a newspaper advertisement published insufficient resources and lack of enthusiasm for corporate advertising, advertising space will cause the number to continue to decline; traditional media and emerging convergence of media compression newspapers will become the new norm, newsprint usage will decline. From the national industrial policy perspective, some small newsprint mill might Guantingbingzhuan future, and for international environmental and other factors, the US waste supply is also uncertain.
But do not think 胡怀福 "serious oversupply" This trend will continue, in his view, with this year's production, each newsprint mill inventories slowly digested, remain within the normal range by the end of this year or early next year, domestic newsprint market supply and demand balance. Statistics from the China Association of Newspapers of data can be seen, in 2015 it is expected to total 75 newspapers in paper consumption was 1.213 million tons, 51,000 tons more than in 2014 to reduce the amount of paper 1.264 million tons, a decline of 4%. "This data projections, 2015 Newspaper total of about 2.64 million tons of paper, paper next year is expected to total output will be maintained at a level of more than 260 million tons this year, the supply and demand balance."

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