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APP China

SHANGHAI, Jan. 2, 2015 (PPI Asia) -The Chinese paper and board market was mostly flat in December, with only some prices seeing slight declines.

Levels for all surveyed coated fine paper (CFP) grades were unchanged. Premium end CFP prices remained at RMB 5,400-5,550/tonne ($871-895/tonne), the same as in November.

Commodity CFP grades were flat at RMB 5,000-5,050/tonne.

APP China announced a hike of RMB 100/tonne, but did not get it through. Other producers had also mulled over price rises in the past several months, but most backed off due to poor demand.

Sources said that CFP prices, which lingered at low levels over the whole of 2014, would be difficult to boost in the near future on the oversupplied market.

On the uncoated fine paper (UFP) side, prices softened by up to RMB 50/tonne in early December.

The grade made with 100% chemical wood pulp moved down to RMB 6,100-6,200/tonne from RMB 6,150-6,200/tonne. The grade made with mixed chemical and mechanical pulp also saw small dips, to RMB 5,450-5,600/tonne from 5,500-5,600/tonne.

UFP furnished with mixed wood and nonwood pulp declined to RMB 5,000-5,300/tonne from RMB 5,100-5,300/tonne.

Public bidding for next semester's school materials has wrapped up, and small, low-end UFP producers are now busy with those orders.

However, overall demand for major producers' UFP, for which the major furnish is chemical wood fiber, has been slack.

Several producers have announced a price hike of around RMB 100/tonne for January.

But a trader indicated it would not be easy to implement it.

The source explained that while mills that struck school material deals will be busy with those orders in January, overall market supply is ample, and orders unrelated to textbooks have not increased.

Packaging stable:Board prices were quite stable in December.

After small dips in November, recycled containerboard prices stabilized last month. Testliner and kraft-top linerboard were flat at RMB 2,830-3,040/tonne and RMB 3,110-3,290/tonne respectively, and high-strength corrugating medium levels were unmoved at RMB 2,580-2,870/tonne.

The stabilization could be due to rising domestic old corrugated container (OCC) prices, which inched up around RMB 50/tonne to RMB 1,270-1,480/tonne, and to producers' price hike efforts.

Some producers tried to raise board prices by RMB 50-100/tonne in December, but their attempts failed due to the poor economic situation.

On the supply side, Fujian Liansheng Paper's Longhai mill in Fujian province has suspended production due to a big fire on December 23. The blaze hit a warehouse where its recycled containerboard output was stored.

The mill houses two recycled containerboard PMs with a combined capacity of 650,000 tonnes/yr. It is unknown when they will resume production.

Some other mills are mulling over price hikes due to the downtime and stock loss, but so far the fire has not made a big impact on overall board availability.

In Jiangsu province, Nine Dragons Paper (Holdings) will curtail its recycled containerboard production by around 90,000 tonnes in February at its Taicang mill.

Four PMs there will take maintenance-related downtime in turn around the approaching Lunar New Year holiday, which will fall on February 19.

Market sources reported that the downtime will start in early February and last for a month.

On the cartonboard front, prices for premium coated ivory board remained flat at RMB 6,050-6,300/tonne, and commodity coated ivory board levels slipped from RMB 4,850-5,200/tonne to RMB 4,800-5,200/tonne.

Grayback coated duplex board prices were stable, with the premium and commodity grades unchanged at RMB 3,800-4,300/tonne and RMB 3,250-3,500/tonne respectively.

Nine Dragons announced a price increase of RMB 50/tonne for grayback coated duplex board output from its Taicang plant in December, but it was not fully implemented.

At the site, the giant runs one grayback coated duplex board PM with a capacity of 430,000 tonnes/yr, which is planned to be rebuilt at the end of January.

The two-week long overhaul will cut supply by around 16,000 tonnes.

By Rita Yao, News Editor,PPI Asiaryao@risi.com

Chinese board prices stable over last month of 2014 as hike efforts fail

Posted in: Packaging Technology 01/01/2015 - 15:27

SHANGHAI, Jan. 2, 2015 (PPI Asia) -The Chinese paper and board market was mostly flat in December, with only some prices seeing slight declines.

Levels for all surveyed coated fine paper (CFP) grades were unchanged. Premium end CFP prices remained at RMB 5,400-5,550/tonne ($871-895/tonne), the same as in November.

Commodity CFP grades were flat at RMB 5,000-5,050/tonne.

APP China announced a hike of RMB 100/tonne, but did not get it through. Other producers had also mulled over price rises in the past several months, but most backed off due to poor demand.

Sources said that CFP prices, which lingered at low levels over the whole of 2014, would be difficult to boost in the near future on the oversupplied market.

On the uncoated fine paper (UFP) side, prices softened by up to RMB 50/tonne in early December.

The grade made with 100% chemical wood pulp moved down to RMB 6,100-6,200/tonne from RMB 6,150-6,200/tonne. The grade made with mixed chemical and mechanical pulp also saw small dips, to RMB 5,450-5,600/tonne from 5,500-5,600/tonne.

UFP furnished with mixed wood and nonwood pulp declined to RMB 5,000-5,300/tonne from RMB 5,100-5,300/tonne.

Public bidding for next semester's school materials has wrapped up, and small, low-end UFP producers are now busy with those orders.

However, overall demand for major producers' UFP, for which the major furnish is chemical wood fiber, has been slack.

Several producers have announced a price hike of around RMB 100/tonne for January.

But a trader indicated it would not be easy to implement it.

The source explained that while mills that struck school material deals will be busy with those orders in January, overall market supply is ample, and orders unrelated to textbooks have not increased.

Packaging stable:Board prices were quite stable in December.

After small dips in November, recycled containerboard prices stabilized last month. Testliner and kraft-top linerboard were flat at RMB 2,830-3,040/tonne and RMB 3,110-3,290/tonne respectively, and high-strength corrugating medium levels were unmoved at RMB 2,580-2,870/tonne.

The stabilization could be due to rising domestic old corrugated container (OCC) prices, which inched up around RMB 50/tonne to RMB 1,270-1,480/tonne, and to producers' price hike efforts.

Some producers tried to raise board prices by RMB 50-100/tonne in December, but their attempts failed due to the poor economic situation.

On the supply side, Fujian Liansheng Paper's Longhai mill in Fujian province has suspended production due to a big fire on December 23. The blaze hit a warehouse where its recycled containerboard output was stored.

The mill houses two recycled containerboard PMs with a combined capacity of 650,000 tonnes/yr. It is unknown when they will resume production.

Some other mills are mulling over price hikes due to the downtime and stock loss, but so far the fire has not made a big impact on overall board availability.

In Jiangsu province, Nine Dragons Paper (Holdings) will curtail its recycled containerboard production by around 90,000 tonnes in February at its Taicang mill.

Four PMs there will take maintenance-related downtime in turn around the approaching Lunar New Year holiday, which will fall on February 19.

Market sources reported that the downtime will start in early February and last for a month.

On the cartonboard front, prices for premium coated ivory board remained flat at RMB 6,050-6,300/tonne, and commodity coated ivory board levels slipped from RMB 4,850-5,200/tonne to RMB 4,800-5,200/tonne.

Grayback coated duplex board prices were stable, with the premium and commodity grades unchanged at RMB 3,800-4,300/tonne and RMB 3,250-3,500/tonne respectively.

Nine Dragons announced a price increase of RMB 50/tonne for grayback coated duplex board output from its Taicang plant in December, but it was not fully implemented.

At the site, the giant runs one grayback coated duplex board PM with a capacity of 430,000 tonnes/yr, which is planned to be rebuilt at the end of January.

The two-week long overhaul will cut supply by around 16,000 tonnes.

By Rita Yao, News Editor,PPI Asiaryao@risi.com

Read more

JAKARTA, Indonesia, Feb. 5, 2014 (Press Release) - Asia Pulp & Paper Group (APP) launched its Forest Conservation Policy (FCP) Anniversary Report with a call for NGOs, Governments and businesses to work together in an effort to help tackle deforestation in Indonesia.

On February 5th 2013, APP announced a permanent end to natural forest clearance across its entire supply chain through the introduction of its FCP. Covering over 2.6 million hectares of forest concessions, APP's FCP represented a breakthrough moment for the global protection of natural forest. The commitment is the largest and most ambitious plan for the implementation of landscape level High Conservation Value (HCV) and High Carbon Stock (HCS) principles in the world.

As HCV and HCS assessments are nearing completion, APP has begun the process of translating its findings into the Integrated Sustainable Forest Management Plans (ISFMPs), which will set out how the concessions will be run and preserved.

However, in developing these plans, the company has concluded that success in the long term will require commitment from many more of Indonesia's forestry stakeholders.

Aida Greenbury, APP's managing director of sustainability and stakeholder engagement, said: "We are creating management plans to ensure the viability of the 2.6 million hectares that our suppliers are responsible for. However, unless all of Indonesia's land is properly managed too, then the forest landscape will continue to be at risk from further degradation.

"In 2014, we will finalise the largest integrated biodiversity and conservation assessments that have ever been conducted. From these assessments, we have discovered many opportunities and obstacles that we know cannot be realised or resolved by a single company.

"It is time for all parties to get active and start working together. The days of campaigning against businesses that have shown commitment to change the way they operate, as we have, should be brought to a conclusion. Now is the time to focus on the future and to develop solutions to the complex issues associated with forestry in Indonesia and to promote responsible practise."

Scott Poynton, executive director of The Forest Trust, a non-profit organisation that is helping APP ensure its policy is translated into actual change on the ground, said: "One year in and we have a moratorium on forest clearance in all its suppliers that has proven to be effective. HCV and HCS forest assessments are being completed, a number of social conflicts are now solved, and there is real transparency in reporting progress against its policy.

"We understand that complete trust isn't built in a day and not even in a single year, but the company is listening to concerns and is ready to continue to implement and improve its FCP implementation. APP is 100 per cent committed to zero deforestation."

As part of its one year anniversary, APP has set out the four key priorities for 2014 that must be addressed by broader industry to bring about zero deforestation. These are:

  • Overlapping licenses - The issue of overlapping licenses needs to be resolved by all concerned parties if we are to develop a system for governing all concession holders in Indonesia.

  • Community and land conflict issues - At times when the needs of communities are at odds with no-deforestation policies, an agreed and consistent way of managing the negotiation process should be developed.

  • Landscape management - Landscape level conservation is vital to the preservation of peatland, the habitat of key species and protection against forest fires, all of which can span several concession areas of differing uses. A cross sector approach must therefore be developed to manage entire landscapes to ensure their long term viability.

  • Market recognition - Policies that protect forests and peatland can only be economically viable if there is market recognition of their value. It is therefore important for the market to encourage companies to introduce and implement them.

To mark the FCP's anniversary, APP is today hosting an event in Jakarta, at which this and other issues can be debated by panellists from APP, TFT, Greenpeace, Ekologika and NGO participants. The panel is moderated by Mongabay's Rhett Butler.

A recording of the event will be available at www.asiapulppaper.com this week. In addition, Twitter users can follow the discussion using hashtag #APP1yrFCP.

Notes to editors:

Key highlights of the first year of FCP implementation can be found in APP's One Year Anniversary Report, available at www.asiapulppaper.com.

ABOUT APP

Asia Pulp & Paper Group (APP) is a trade name for a group of pulp and paper manufacturing companies in Indonesia and China. The APP Group of companies is one of the world's largest vertically integrated pulp and paper companies, with an annual combined pulp, paper, and converting products capacity of over 18 million tons. APP-Indonesia and APP-China currently market their products in more than 120 countries across six continents. The majority of APP's production facilities are Chain-of-Custody certified by SVLK, LEI and PEFC.

APP launched its Sustainability Roadmap Vision 2020 in June 2012 and its Forest Conservation policy in February 2013, to further improve its environmental performance, biodiversity conservation, and protection of community rights.

Asia Pulp & Paper calls on NGOs, governments and businesses to collaborate to protect Indonesia’s forests

Posted in: Environment 02/12/2014 - 03:28

JAKARTA, Indonesia, Feb. 5, 2014 (Press Release) - Asia Pulp & Paper Group (APP) launched its Forest Conservation Policy (FCP) Anniversary Report with a call for NGOs, Governments and businesses to work together in an effort to help tackle deforestation in Indonesia.

On February 5th 2013, APP announced a permanent end to natural forest clearance across its entire supply chain through the introduction of its FCP. Covering over 2.6 million hectares of forest concessions, APP's FCP represented a breakthrough moment for the global protection of natural forest. The commitment is the largest and most ambitious plan for the implementation of landscape level High Conservation Value (HCV) and High Carbon Stock (HCS) principles in the world.

As HCV and HCS assessments are nearing completion, APP has begun the process of translating its findings into the Integrated Sustainable Forest Management Plans (ISFMPs), which will set out how the concessions will be run and preserved.

However, in developing these plans, the company has concluded that success in the long term will require commitment from many more of Indonesia's forestry stakeholders.

Aida Greenbury, APP's managing director of sustainability and stakeholder engagement, said: "We are creating management plans to ensure the viability of the 2.6 million hectares that our suppliers are responsible for. However, unless all of Indonesia's land is properly managed too, then the forest landscape will continue to be at risk from further degradation.

"In 2014, we will finalise the largest integrated biodiversity and conservation assessments that have ever been conducted. From these assessments, we have discovered many opportunities and obstacles that we know cannot be realised or resolved by a single company.

"It is time for all parties to get active and start working together. The days of campaigning against businesses that have shown commitment to change the way they operate, as we have, should be brought to a conclusion. Now is the time to focus on the future and to develop solutions to the complex issues associated with forestry in Indonesia and to promote responsible practise."

Scott Poynton, executive director of The Forest Trust, a non-profit organisation that is helping APP ensure its policy is translated into actual change on the ground, said: "One year in and we have a moratorium on forest clearance in all its suppliers that has proven to be effective. HCV and HCS forest assessments are being completed, a number of social conflicts are now solved, and there is real transparency in reporting progress against its policy.

"We understand that complete trust isn't built in a day and not even in a single year, but the company is listening to concerns and is ready to continue to implement and improve its FCP implementation. APP is 100 per cent committed to zero deforestation."

As part of its one year anniversary, APP has set out the four key priorities for 2014 that must be addressed by broader industry to bring about zero deforestation. These are:

  • Overlapping licenses - The issue of overlapping licenses needs to be resolved by all concerned parties if we are to develop a system for governing all concession holders in Indonesia.

  • Community and land conflict issues - At times when the needs of communities are at odds with no-deforestation policies, an agreed and consistent way of managing the negotiation process should be developed.

  • Landscape management - Landscape level conservation is vital to the preservation of peatland, the habitat of key species and protection against forest fires, all of which can span several concession areas of differing uses. A cross sector approach must therefore be developed to manage entire landscapes to ensure their long term viability.

  • Market recognition - Policies that protect forests and peatland can only be economically viable if there is market recognition of their value. It is therefore important for the market to encourage companies to introduce and implement them.

To mark the FCP's anniversary, APP is today hosting an event in Jakarta, at which this and other issues can be debated by panellists from APP, TFT, Greenpeace, Ekologika and NGO participants. The panel is moderated by Mongabay's Rhett Butler.

A recording of the event will be available at www.asiapulppaper.com this week. In addition, Twitter users can follow the discussion using hashtag #APP1yrFCP.

Notes to editors:

Key highlights of the first year of FCP implementation can be found in APP's One Year Anniversary Report, available at www.asiapulppaper.com.

ABOUT APP

Asia Pulp & Paper Group (APP) is a trade name for a group of pulp and paper manufacturing companies in Indonesia and China. The APP Group of companies is one of the world's largest vertically integrated pulp and paper companies, with an annual combined pulp, paper, and converting products capacity of over 18 million tons. APP-Indonesia and APP-China currently market their products in more than 120 countries across six continents. The majority of APP's production facilities are Chain-of-Custody certified by SVLK, LEI and PEFC.

APP launched its Sustainability Roadmap Vision 2020 in June 2012 and its Forest Conservation policy in February 2013, to further improve its environmental performance, biodiversity conservation, and protection of community rights.

Read more

SHANGHAI, Aug. 2, 2013 (PPI Asia) -China's paper and board (P&B) prices remained flat or dipped slightly in July as the country's slump deepened during the traditionally slack summer period.

Rapid expansion, fueled by heavy investments in the wake of the Chinese government's huge RMB 4 trillion ($652 million) stimulus program announced in late 2008, has taken a toll on the P&B industry, leading to overcapacity for almost every grade.

The ailing industry has taken a further hit after the Chinese leadership, formed by president Xi Jinping and premier Li Keqiang, stressed the need to restructure the economy towards more sustainable and somewhat slower growth.

"A major impact [on the P&B industry] is from the tightening of bank borrowing. The state-run banks have stepped up pressure on the debt-laden Chinese producers to repay their loans," observed a European firm, which owns production bases in China.

Mills that are government-owned, wholly or partly, account for the numerical majority of those in the P&B industry. They have borne the brunt of the newly adopted tightening.

"With easy money from bank borrowings, many of those companies are not managed with profit-driven objectives. They do not take downtime and usually dump their finished products on the domestic market at heavy discounts when under financial duress," the contact added.

What the source described pinpoints the main problem the Chinese industry is facing - falling prices stemming from fierce competition, wide price spreads, and a stagnant market marked by demand growing at a slower pace than supply.

Fine paper down:For coated fine paper (CFP), prices for the grade made with 100% chemical pulp in reels moved down a little to RMB 5,250-6,100/tonne from RMB 5,250-6,200/tonne in June.

While well-branded producers managed to sell their top-quality CFP at levels around the top end of the price range, other firms were willing to go to market with lower rates, below RMB 5,750/tonne.

Levels for low-end CFP manufactured with mixed chemical and mechanical pulp were stagnant at RMB 5,000-5,200/tonne.

In spite of the current slow sales, many producers are reluctant to cut prices, for CFP prices have lingered at low levels in the past two years and squeezed profit margins.

Mills resorted to offering discounts of up to RMB 200/tonne in July for big deals to attract buyers.

However, many traders were not very enthusiastic due to the sluggishness of the oversupplied market.

On the uncoated fine paper (UFP) front, the grade in reels manufactured with mixed wood and nonwood fiber was stagnant at RMB 5,100-5,400/tonne.

And higher-end UFP in reels was sold at RMB 5,500-6,450/tonne, sliding slightly from RMB 5,500-6,550/tonne.

Specifically, prices for UFP made with 100% chemical wood pulp were around 6,250-6,450/tonne.

In China, it is common for some UFP products to be furnished mainly with chemical pulp and a balance of mechanical pulp.

Prices for such popular UFP products were mostly around RMB 5,600-5,800/tonne in July.

On the supply side, MCC Yinhe Paper restarted a 200,000 tonne/yr UFP unit at its sole mill in Linqing city, Shandong province in late July.

The PM had suspended production in late June due to the firm's serious debt problems.

As with CFP, the UFP segment has also been greatly affected by the general market weakness.

Both producers and major traders are unsure if lower prices could bring obvious sales increases in the context of the economic slowdown.

In mid-July, the Chinese government released its economic data for the first half of this year, showing the Gross Domestic Product (GDP) growth rate in the second quarter decreased to 7.5% from 7.7% in Q1.

And it has been reported that the deceleration in growth indicated much more pressure in the second half of this year. There are also doubts on if the country could meet its GDP target of a 7.5% annual growth rate for 2013.

Board prices down:Most board grades surveyed saw falling prices in July.

Linerboard prices fell about RMB 50/tonne at the high end after big producers made price cuts in early July.

Levels for kraft-top liner in the basis weights of 110 g/m² and 120 g/m², for instance, dropped a little to RMB 3,100-3,600/tonne from RMB 3,100-3,650/tonne.

And popular kraft-top liner products from major mills were sold for RMB 3,250-3,600/tonne.

Prices for recycled fluting in the same basis weights remained unchanged at RMB 2,300-2,700/tonne in July although big producers tried to push up prices by RMB 50/tonne.

Levels for some high-strength recycled fluting brands made by big producers were around RMB 2,700/tonne.

In addition to the weak economy within the country, worsening exports also affected the consumption of packaging materials.

Board consumption in China has long been closely connected with exports, with firms selling products overseas often being major packaging users.

According to the latest trade data released by China Customs, exports in June dropped 3.1% from June 2012 to $174.32 billion, the biggest dip since October 2009.

Although the traditional prime season for board consumption is drawing near, it is unknown how prices will change, as supply will keep growing in the second half of the year.

Sources reported that Nine Dragons Paper (Holdings) plans to fire up two recycled linerboard machines with a combined capacity of 650,000 tonnes/yr in late August at a greenfield mill in Quanzhou city, Fujian province.

In Sichuan province, the firm will start up a 300,000 tonne/yr recycled fluting PM at its site in Leshan city by the end of this year.

On the cartonboard side, coated ivory board saw unchanged prices of RMB 5,250-6,300/tonne.

Levels for some major brands were around RMB 5,300-5,600/tonne, and some high-end brands were sold at around RMB 6,300/tonne and even higher.

Although APP China and Shandong Bohui Industry have recently started up 1.2 million tonne/yr and a 1 million tonne/yr coated ivory board machines, prices on the market have not fluctuated greatly.

On the one hand, the two PMs are gradually ramping up. On the other hand, sources reported that APP China has tried to optimize its product portfolio in China in advance to balance its market supply.

In addition to increasing coated ivory board exports, the firm also raised art board production at its site in Ningbo city, Zhejiang province, which houses a 1 million tonne/yr coated ivory board PM.

Grayback coated duplex board prices declined to RMB 3,300-4,600/tonne from RMB 3,350-4,600/tonne.

The erosion could be ascribed to the price cuts of around RMB 50/tonne by mills in Fuyang city, Zhejiang province, which is a hub for the production of grayback coated duplex board.

Like previous years, mills there have started taking 10-15 days downtime every month to save energy.

It is standard in China for manufacturing plants to slow production in summer to ensure that residents have enough power supply.

Over the past two years, the measure has also helped board plants in Fuyang deal with low demand and high inventories.

Paper and board prices stagnant or down in China as overcapacity, tightened credit bites

Posted in: Packaging Technology 08/01/2013 - 18:33

SHANGHAI, Aug. 2, 2013 (PPI Asia) -China's paper and board (P&B) prices remained flat or dipped slightly in July as the country's slump deepened during the traditionally slack summer period.

Rapid expansion, fueled by heavy investments in the wake of the Chinese government's huge RMB 4 trillion ($652 million) stimulus program announced in late 2008, has taken a toll on the P&B industry, leading to overcapacity for almost every grade.

The ailing industry has taken a further hit after the Chinese leadership, formed by president Xi Jinping and premier Li Keqiang, stressed the need to restructure the economy towards more sustainable and somewhat slower growth.

"A major impact [on the P&B industry] is from the tightening of bank borrowing. The state-run banks have stepped up pressure on the debt-laden Chinese producers to repay their loans," observed a European firm, which owns production bases in China.

Mills that are government-owned, wholly or partly, account for the numerical majority of those in the P&B industry. They have borne the brunt of the newly adopted tightening.

"With easy money from bank borrowings, many of those companies are not managed with profit-driven objectives. They do not take downtime and usually dump their finished products on the domestic market at heavy discounts when under financial duress," the contact added.

What the source described pinpoints the main problem the Chinese industry is facing - falling prices stemming from fierce competition, wide price spreads, and a stagnant market marked by demand growing at a slower pace than supply.

Fine paper down:For coated fine paper (CFP), prices for the grade made with 100% chemical pulp in reels moved down a little to RMB 5,250-6,100/tonne from RMB 5,250-6,200/tonne in June.

While well-branded producers managed to sell their top-quality CFP at levels around the top end of the price range, other firms were willing to go to market with lower rates, below RMB 5,750/tonne.

Levels for low-end CFP manufactured with mixed chemical and mechanical pulp were stagnant at RMB 5,000-5,200/tonne.

In spite of the current slow sales, many producers are reluctant to cut prices, for CFP prices have lingered at low levels in the past two years and squeezed profit margins.

Mills resorted to offering discounts of up to RMB 200/tonne in July for big deals to attract buyers.

However, many traders were not very enthusiastic due to the sluggishness of the oversupplied market.

On the uncoated fine paper (UFP) front, the grade in reels manufactured with mixed wood and nonwood fiber was stagnant at RMB 5,100-5,400/tonne.

And higher-end UFP in reels was sold at RMB 5,500-6,450/tonne, sliding slightly from RMB 5,500-6,550/tonne.

Specifically, prices for UFP made with 100% chemical wood pulp were around 6,250-6,450/tonne.

In China, it is common for some UFP products to be furnished mainly with chemical pulp and a balance of mechanical pulp.

Prices for such popular UFP products were mostly around RMB 5,600-5,800/tonne in July.

On the supply side, MCC Yinhe Paper restarted a 200,000 tonne/yr UFP unit at its sole mill in Linqing city, Shandong province in late July.

The PM had suspended production in late June due to the firm's serious debt problems.

As with CFP, the UFP segment has also been greatly affected by the general market weakness.

Both producers and major traders are unsure if lower prices could bring obvious sales increases in the context of the economic slowdown.

In mid-July, the Chinese government released its economic data for the first half of this year, showing the Gross Domestic Product (GDP) growth rate in the second quarter decreased to 7.5% from 7.7% in Q1.

And it has been reported that the deceleration in growth indicated much more pressure in the second half of this year. There are also doubts on if the country could meet its GDP target of a 7.5% annual growth rate for 2013.

Board prices down:Most board grades surveyed saw falling prices in July.

Linerboard prices fell about RMB 50/tonne at the high end after big producers made price cuts in early July.

Levels for kraft-top liner in the basis weights of 110 g/m² and 120 g/m², for instance, dropped a little to RMB 3,100-3,600/tonne from RMB 3,100-3,650/tonne.

And popular kraft-top liner products from major mills were sold for RMB 3,250-3,600/tonne.

Prices for recycled fluting in the same basis weights remained unchanged at RMB 2,300-2,700/tonne in July although big producers tried to push up prices by RMB 50/tonne.

Levels for some high-strength recycled fluting brands made by big producers were around RMB 2,700/tonne.

In addition to the weak economy within the country, worsening exports also affected the consumption of packaging materials.

Board consumption in China has long been closely connected with exports, with firms selling products overseas often being major packaging users.

According to the latest trade data released by China Customs, exports in June dropped 3.1% from June 2012 to $174.32 billion, the biggest dip since October 2009.

Although the traditional prime season for board consumption is drawing near, it is unknown how prices will change, as supply will keep growing in the second half of the year.

Sources reported that Nine Dragons Paper (Holdings) plans to fire up two recycled linerboard machines with a combined capacity of 650,000 tonnes/yr in late August at a greenfield mill in Quanzhou city, Fujian province.

In Sichuan province, the firm will start up a 300,000 tonne/yr recycled fluting PM at its site in Leshan city by the end of this year.

On the cartonboard side, coated ivory board saw unchanged prices of RMB 5,250-6,300/tonne.

Levels for some major brands were around RMB 5,300-5,600/tonne, and some high-end brands were sold at around RMB 6,300/tonne and even higher.

Although APP China and Shandong Bohui Industry have recently started up 1.2 million tonne/yr and a 1 million tonne/yr coated ivory board machines, prices on the market have not fluctuated greatly.

On the one hand, the two PMs are gradually ramping up. On the other hand, sources reported that APP China has tried to optimize its product portfolio in China in advance to balance its market supply.

In addition to increasing coated ivory board exports, the firm also raised art board production at its site in Ningbo city, Zhejiang province, which houses a 1 million tonne/yr coated ivory board PM.

Grayback coated duplex board prices declined to RMB 3,300-4,600/tonne from RMB 3,350-4,600/tonne.

The erosion could be ascribed to the price cuts of around RMB 50/tonne by mills in Fuyang city, Zhejiang province, which is a hub for the production of grayback coated duplex board.

Like previous years, mills there have started taking 10-15 days downtime every month to save energy.

It is standard in China for manufacturing plants to slow production in summer to ensure that residents have enough power supply.

Over the past two years, the measure has also helped board plants in Fuyang deal with low demand and high inventories.

Read more

SHENZHEN, China , July 4, 2012 (Press Release) -The Chinese Academy of Forestry (CAF) hosted the ‘Responsible Procurement in China's Forest Products (Pulp and Paper), Certification Workshop 2012' in Shenzhen, China on June 29, along with PEFC China, the DNV Sustainability Center, as well as Green China magazine. At the event, representatives from the State Forestry Administration of China (SFA) stressed that the nation's forest certification standard - the China Forest Certification Council (CFCC) - has been established and remains adhered to the highest standards of sustainable forest management, and called on countries worldwide to adopt CFCC-certified products in their national procurement policies.

Apart from delegates of government authorities and research institutes, as one of the world's largest pulp and paper producers, APP-China was an important participant in the event as a staunch advocate of forest certification, being joined by more than 100 top sourcing and sustainability professionals from over ten industries, including wood and paper product manufacturers, printers and consumer enterprises. Attendees enthusiastically discussed the current status of forest certification domestically and abroad, as well as China's latest policies on paper and forestry product sourcing.

According to China's 12th Five-Year Plan for China's Paper Industry, China has become the world's number one paper manufacturing and consumption nation, yet in the past few years, the absence of a recognized forest certification scheme in the country posed severe challenges to the trade of its forestry products overseas. However, this situation is set to change.

"Established by the SFA with strong support from the Certification and Accreditation Administration of China (CNCA), CFCC is currently being progressively and systematically promoted within China's forestry industry," said the CAF's Dr. Lu Wenming. "Taking full consideration of China's domestic conditions, the CFCC scheme is set to facilitate forest certification practices in China, and shall ultimately drive the sustainable development of the Chinese and international forestry industry."

As one of the world's leading forest certification system, PEFC serves as a lineage between CFCC and the global market. According to the Director of PEFC China Initiative Benson Yu, CFCC joined PEFC in 2011, which was regarded as an important milestone for China's forest certification system towards gaining international recognition, while its next step of applying for PEFC endorsement is expected in the near future.

"Currently, forests certified by independent organizations amount to only less than 10% of the world's total commercial forest areas. With the fastest growing forests in the world, China's entry into recognized forest certification schemes will generate a substantial increase in the total mass of certified forest regions on a global scale," said international senior consultant of sustainability Ms. Kayt Watts. Echoing the long-term observation of the international forest certification industry, Ms. Watts remarked that the government's new sourcing policies would effectively prompt more enterprises to reevaluate their commercial practices.

"At present, many countries are calling for a recognized Sustainable Forest and Chain of Custody Certification for government agenda, and some of them have already introduced legality requirements for wood and paper products. In this realm, Australia is introducing a legislation that renders proof of legality mandatory," Ms. Watts added.

Commenting on this, Dr. Lu Wenming said the Chinese government is in the process of establishing a series of related regulatory schemes, comprising of policies for government procurement activities and financial subsidies, to encourage more enterprises to recognize CFCC certification, so as to provide collective support for China to develop its forestry industry responsibly.

According to figures from the Zhonglin Tianhe (Beijing) Forest Certification Center, there are currently eight forestry enterprises and two forestry product processing companies that have been granted CFCC certification, which includes APP-China.

"As an enterprise representing the pulp and paper industry, APP will continue to firmly uphold our commitment to responsible development," said Sophy Huang, PR Director of APP-China. "This includes sourcing of raw materials from legal sources locally and overseas, and proactively supporting certification of pulp and paper products, thereby furthering the sustainable development of forests in China and on a global scale."

APP China participates in CAF's certification workshop 2012 for China's responsible procurement of forest products

Posted in: Environment 07/04/2012 - 18:18

SHENZHEN, China , July 4, 2012 (Press Release) -The Chinese Academy of Forestry (CAF) hosted the ‘Responsible Procurement in China's Forest Products (Pulp and Paper), Certification Workshop 2012' in Shenzhen, China on June 29, along with PEFC China, the DNV Sustainability Center, as well as Green China magazine. At the event, representatives from the State Forestry Administration of China (SFA) stressed that the nation's forest certification standard - the China Forest Certification Council (CFCC) - has been established and remains adhered to the highest standards of sustainable forest management, and called on countries worldwide to adopt CFCC-certified products in their national procurement policies.

Apart from delegates of government authorities and research institutes, as one of the world's largest pulp and paper producers, APP-China was an important participant in the event as a staunch advocate of forest certification, being joined by more than 100 top sourcing and sustainability professionals from over ten industries, including wood and paper product manufacturers, printers and consumer enterprises. Attendees enthusiastically discussed the current status of forest certification domestically and abroad, as well as China's latest policies on paper and forestry product sourcing.

According to China's 12th Five-Year Plan for China's Paper Industry, China has become the world's number one paper manufacturing and consumption nation, yet in the past few years, the absence of a recognized forest certification scheme in the country posed severe challenges to the trade of its forestry products overseas. However, this situation is set to change.

"Established by the SFA with strong support from the Certification and Accreditation Administration of China (CNCA), CFCC is currently being progressively and systematically promoted within China's forestry industry," said the CAF's Dr. Lu Wenming. "Taking full consideration of China's domestic conditions, the CFCC scheme is set to facilitate forest certification practices in China, and shall ultimately drive the sustainable development of the Chinese and international forestry industry."

As one of the world's leading forest certification system, PEFC serves as a lineage between CFCC and the global market. According to the Director of PEFC China Initiative Benson Yu, CFCC joined PEFC in 2011, which was regarded as an important milestone for China's forest certification system towards gaining international recognition, while its next step of applying for PEFC endorsement is expected in the near future.

"Currently, forests certified by independent organizations amount to only less than 10% of the world's total commercial forest areas. With the fastest growing forests in the world, China's entry into recognized forest certification schemes will generate a substantial increase in the total mass of certified forest regions on a global scale," said international senior consultant of sustainability Ms. Kayt Watts. Echoing the long-term observation of the international forest certification industry, Ms. Watts remarked that the government's new sourcing policies would effectively prompt more enterprises to reevaluate their commercial practices.

"At present, many countries are calling for a recognized Sustainable Forest and Chain of Custody Certification for government agenda, and some of them have already introduced legality requirements for wood and paper products. In this realm, Australia is introducing a legislation that renders proof of legality mandatory," Ms. Watts added.

Commenting on this, Dr. Lu Wenming said the Chinese government is in the process of establishing a series of related regulatory schemes, comprising of policies for government procurement activities and financial subsidies, to encourage more enterprises to recognize CFCC certification, so as to provide collective support for China to develop its forestry industry responsibly.

According to figures from the Zhonglin Tianhe (Beijing) Forest Certification Center, there are currently eight forestry enterprises and two forestry product processing companies that have been granted CFCC certification, which includes APP-China.

"As an enterprise representing the pulp and paper industry, APP will continue to firmly uphold our commitment to responsible development," said Sophy Huang, PR Director of APP-China. "This includes sourcing of raw materials from legal sources locally and overseas, and proactively supporting certification of pulp and paper products, thereby furthering the sustainable development of forests in China and on a global scale."

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SHANGHAI, CHINA, Jan. 19, 2012 (Business Wire) -Asia Pulp & Paper (APP) and seventy-six other enterprises jointly signed an initiative put forward by the China Paper Association at the 2nd Annual Forum on the Chinese Paper Industry's Green Development. This initiative calls for collective efforts to advance the industry's sustainable development by committing to accomplishing the energy-saving and emission-reduction targets set by the Chinese central government in its 12th Five Year Plan (2011-2015).

Being a prominent player in China's pulp and paper industry, APP will make major contributions in leading the entire industry to collaboratively stepping up efforts on green development and achieving the goals outlined in the 12th Five Year Plan as part of its commitment to the initiative.

According to the initiative, both the industry's average comprehensive energy consumption and average water consumption per ton of pulp/paper should see a decrease of 18% by 2015. Emissions of chemical oxygen demand (COD) needs to be reduced by 10%. Additionally, the percentage of bio-energy should rise to 20% in the industry's overall energy consumption.

"Responsibility is at the heart of APP-China's core business strategy which functions as a built-in mechanism to ensure good corporate governance and sustainable development for economic, environmental and social well-being," said APP-China PR Director Sophy Huang. "However, APP-China's commitment to corporate responsibility is not limited to our own operations. As a leading player in China's paper industry, we should also act to effectively encourage greater engagement in such issues from all our fellow industry players."

In its latest quarterly report of Paper Contract with China (PCwC), APP-China specifically shares its insights on how paper companies could generate a positive impact through their responsible actions. In order to deliver long-term value to all stakeholders through responsible performances, the report highlights that platforms for resource, knowledge, and experience sharing should be created to engage a broad cross-section of companies, industries, and nations to deliver a positive impact on communities.

Apart from strongly advocating responsible operations during industry events hosted by associations and academies, APP-China has been championing the establishment of a number of industry-wide knowledge-sharing platforms aimed at creating significant positive impact on economy, society and the environment.

In 2008, APP-China started its support of the annual Paper Industry Sustainability Forum, one of the most significant events in China's paper industry which is jointly organized by influential industry organizations, academic institutions and media. Each year, this forum gathers together government officials, scholars, industry and media representatives to have an in-depth discussion on the industry's sustainability issues and maps out the issues which need to be addressed.

In addition, since 2007, APP's flagship mill in China - Gold East Paper has brought together hundreds of industry professionals across the paper and printing industry chain through organizing the Sinar Mas Print Awards. These awards offer a platform for upstream and downstream players to gather together for in-depth discussions on the latest printing technologies, novel materials and craftsmanship.

Ms. Huang added that responsibility is a key element of APP's Paper Contract with China sustainability pledges. "Through scientific, systematic and integrated responsible approaches, in addition to building up a green paper industry in the nation, the Chinese paper industry will also be able to undertake more environmental, social and economic responsibilities in the global sphere."

APP China commits to lead efforts in advancing Chinese paper industry’s sustainable development

Posted in: Environment 01/19/2012 - 15:13

SHANGHAI, CHINA, Jan. 19, 2012 (Business Wire) -Asia Pulp & Paper (APP) and seventy-six other enterprises jointly signed an initiative put forward by the China Paper Association at the 2nd Annual Forum on the Chinese Paper Industry's Green Development. This initiative calls for collective efforts to advance the industry's sustainable development by committing to accomplishing the energy-saving and emission-reduction targets set by the Chinese central government in its 12th Five Year Plan (2011-2015).

Being a prominent player in China's pulp and paper industry, APP will make major contributions in leading the entire industry to collaboratively stepping up efforts on green development and achieving the goals outlined in the 12th Five Year Plan as part of its commitment to the initiative.

According to the initiative, both the industry's average comprehensive energy consumption and average water consumption per ton of pulp/paper should see a decrease of 18% by 2015. Emissions of chemical oxygen demand (COD) needs to be reduced by 10%. Additionally, the percentage of bio-energy should rise to 20% in the industry's overall energy consumption.

"Responsibility is at the heart of APP-China's core business strategy which functions as a built-in mechanism to ensure good corporate governance and sustainable development for economic, environmental and social well-being," said APP-China PR Director Sophy Huang. "However, APP-China's commitment to corporate responsibility is not limited to our own operations. As a leading player in China's paper industry, we should also act to effectively encourage greater engagement in such issues from all our fellow industry players."

In its latest quarterly report of Paper Contract with China (PCwC), APP-China specifically shares its insights on how paper companies could generate a positive impact through their responsible actions. In order to deliver long-term value to all stakeholders through responsible performances, the report highlights that platforms for resource, knowledge, and experience sharing should be created to engage a broad cross-section of companies, industries, and nations to deliver a positive impact on communities.

Apart from strongly advocating responsible operations during industry events hosted by associations and academies, APP-China has been championing the establishment of a number of industry-wide knowledge-sharing platforms aimed at creating significant positive impact on economy, society and the environment.

In 2008, APP-China started its support of the annual Paper Industry Sustainability Forum, one of the most significant events in China's paper industry which is jointly organized by influential industry organizations, academic institutions and media. Each year, this forum gathers together government officials, scholars, industry and media representatives to have an in-depth discussion on the industry's sustainability issues and maps out the issues which need to be addressed.

In addition, since 2007, APP's flagship mill in China - Gold East Paper has brought together hundreds of industry professionals across the paper and printing industry chain through organizing the Sinar Mas Print Awards. These awards offer a platform for upstream and downstream players to gather together for in-depth discussions on the latest printing technologies, novel materials and craftsmanship.

Ms. Huang added that responsibility is a key element of APP's Paper Contract with China sustainability pledges. "Through scientific, systematic and integrated responsible approaches, in addition to building up a green paper industry in the nation, the Chinese paper industry will also be able to undertake more environmental, social and economic responsibilities in the global sphere."

Read more

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