Domestic kraft paper is in an advantageous position. Product advantages and adjustment of raw material composition will promote demand growth.

- May 29, 2018-

Domestic kraft paper is in an advantageous position. Product advantages and adjustment of raw material composition will promote demand growth.

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The output of kraft paper is increasing year by year, and domestic kraft paper and kraft paper for food are dominant in the market.

Kraft paper usually maintains its yellow-brown color and is suitable for bags and wrapping paper. Kraft paper has different uses depending on the nature and material. According to the different uses, it can be divided into packaging kraft paper, waterproof kraft paper, moisture-proof kraft paper, anti-rust kraft paper, patterned kraft paper, process kraft paper, insulated kraft paperboard, leather stickers and so on.


China's paper industry downstream demand is relatively stable, so China's kraft paper production is also growing steadily. In 2016, China's kraft paper production was 4.054 million tons, and in 2017 it reached 4.172 million tons.


In 2012, the paper industry consumed capacity, and due to the impact of the economic environment, the demand for paper products was weak, and the size of the kraft market declined, but it began to pick up in 2015. In 2017, the total demand for kraft paper in China was 5.38 million tons. In 2017, the market demand for kraft paper in China was 34.96 billion yuan, with a relatively obvious increase.


China's kraft paper is used in various industries such as chemical industry and machinery, especially in the food packaging industry. In 2017, the size of kraft paper in the food sector reached 27.13 billion yuan, accounting for more than 77% of the entire kraft market.


According to the place of origin, domestic kraft paper dominates the market. In 2017, the domestic kraft paper market reached 28.9 billion yuan, accounting for nearly 83% of the total market.


The kraft paper market has migrated, and product advantages will drive demand growth


The distribution of kraft paper manufacturers in China is formed along with the development of regional economy. Since kraft paper products belong to packaging materials, the layout of kraft paper production industry is closely related to regional economic distribution, and kraft paper sales enterprises are also connected with this. For a long time, the Pearl River Delta, the Yangtze River Delta, and the Bohai Sea region account for the majority of the national kraft demand, and different regions will present different kraft demand. For example, more imported kraft paper products are sold in the Yangtze River Delta region and the Bohai Rim region. In the Pearl River Delta market, whether it is white kraft paper or yellow kraft paper, it is mainly made in China, supplemented by imports.


In recent years, with the development of the state's development of the western and central regions, the formation of economic development zones and economic belts in the Northeast and other places, kraft paper production enterprises began to shift to the central and western regions, which led to the development of the kraft paper industry in the central and western regions, and the industrial layout tends to be reasonable. It will also drive the expansion of the total volume, and will also change the embarrassing situation of the need to transfer goods from the eastern region in the past Midwest.


In terms of raw materials, the main raw material for kraft paper is initially kraft pulp. Wood pulp is an extremely important raw material in the production process of kraft paper. The papermaking pulp of China's packaging kraft paper mainly relies on foreign imports and is greatly affected by external influences. At present, less than one-third of the manufacturers of self-produced pulp packaging kraft paper in China. With the gradual popularization and application of kraft paper, the raw material composition of kraft paper has undergone great changes, from the initial kraft pulp to the bleached softwood pulp, bleached hardwood pulp, waste paper pulping, cotton fiber. Mixing materials such as pulp and chemical pulp to meet the needs of different special properties of kraft paper in different fields.


Along with the rapid development of modern commerce and logistics industry, the demand for packaging materials in the global packaging industry is steadily rising. Among them, the demand for paper products packaging and plastic packaging is the largest, especially for kraft paper packaging. Kraft paper is a renewable resource and an environmentally friendly packaging material, so it is now proposed to replace paper packaging with other packaging materials. For merchants, kraft packaging also has many advantages - one is light. Easy to transport, store, indirectly reduce costs; Second, cheap, the cost of packaging materials with kraft paper is relatively low, directly reducing packaging costs. It can be seen that there will be more and more kraft paper applications in the packaging industry in the future, and demand will further increase.

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