China's Pulp Demand Growth to Stabilize

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“Rabobank estimates that 35% of Chinese pulp demand is generated by the P&W paper sector,” says Andrés Padilla, analyst at Rabobank. “Tissue production represents 28%, virgin boxboard around 15%, and speciality papers 12%. These four components account for the bulk of pulp demand in China (90%). Each of these sectors has different dynamics, and understanding them is key to understanding how overall pulp demand might perform.”

Despite announcements by Chinese mills for new domestic investments, the country is set to remain dependent on pulp imports to supply 60% of its demand going forward. Rabobank expects pulp demand to gradually bounce back in late 2019 and throughout 2020 in China.