The market of packaging paper in the world and the region in 11/2018

The impact of trade war on packaging paper market

The market of packaging paper in the world and the region after 11/2018 has witnessed new changes. In particular, the impact of the trade war has brought many challenges for the industry.

The world market of packaging paper

The China-The US trade war is taking place quite decisively, and both sides decide to impose anti-dumping tariffs on the goods of the other country imported into their country. It is predicted that by the beginning of 2019, the United States will continue to increase its tariff rate from 10% to 20-25% for the $ 200 billion packages purchased from China and possibly for the next $ 260 billion package.

According to the current situation, pulp and paper products will also be affected by this war. From October 2018, the packaging paper in North America and EU which is made from recycled paper materials such as testliner and the medium paper has been stable both in price and demand. However, in Asia, prices dropped sharply by 5.7 - 8.5% depending on the type. As of November 2018, packaging paper made from unbleached and bleached wood pulp in North America remained relatively stable, while the EU tended to increase and Asia experienced a slight decrease of 2.1%.

In November, the price of paper from testliner was at $ 630/ton, down 7.3%, medium fluttering was at $ 590/ton, down 7.8% compared to October 2018. In November, in South-East Asia, the price of paper from testliner was at $ 460 /ton, down 5.1% compared to October 2018. Medium fluttering price was at $ 405/ton, down 5.8% compared with October.

Vietnamese Packaging Paper Market

According to the production statistics in 11/2018, the production of domestic paper reached 280.000 tons, a slight decrease of 2.1% compared to October, the production of printing paper and writing paper decreased by 2.9%. According to statistics of new capacity addition and transformation of FDI enterprises, the ability to produce packaging paper in Vietnam should reach about 315.000 tons/month. As a consequence, paper packaging manufacturers in Vietnam will need to face some challenges in the near future such as seeking raw materials for packaging paper production and considering the cost of packaging paper products of Vietnamese enterprises which is higher than other countries. In addition, countries around Vietnam such as Indonesia, Thailand do not tighten import scrap paper as raw materials to produce paper…

These factors may affect the market of packaging paper production in Vietnam. Paper companies will need to overcome these difficulties and promote the potential of the paper industry.

Paper Vietnam, The International Exhibition & Conference on Pulp and Paper Industry anually held in Vietnam, is an ideal place for connecting, enhancing and expanding businesses. Please come to visit Paper Vietnam 2019, which takes place from 26th – 28th June 2019 at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.

Source: VPPA News