The 18th annual International Pulp Week event hosted by Pulp and Paper Products Council (PPPC) will take place from June 4-6, 2023, in Vancouver, Canada. This three-day event aims to provide participants with valuable insights into the Chinese market’s prospects as the country emerges from lockdown, an overview of the key end-use markets for pulp globally, and the potential opportunities for pulp and paper players through sustainability innovations and efforts to minimize carbon emissions.
These topics are significant for all players in the pulp and paper industry worldwide. As such, we have shed light on critical questions surrounding these topics this year. Here is a selection of our top posts covering these important topics.
Starting from January 1, 2023, China implemented a provisional import tariff rate for 1,020 commodities, which are lower than the most favored nation (MFN) tariffs. 67 finished paper products and converting products are covered in this policy and will enjoy a lower import tariff of 0–5% compared to the standard MFN import duties of 5–6%.
Finished paper products, containerboard, cartonboard, printing and writing paper will all receive a 0% import tariff to strengthen resource supply capacity and improve the resilience of industrial and supply chains. However, this raises a lot of concern from players in this value chain, including:
When looking toward the future, we expect domestic paper prices to continue a downward trend in the short term. In the long term, as net profit reaches a new record low, more manufacturers will exit this market and more consolidations will be expected to occur in the next five years. China’s new provisional import tariff will undoubtedly impact the global paper industry.
We follow all the latest trends, insights, and breaking news in low-carbon fuels and feedstocks across the energy value chain.
To help keep you informed, we’ve put together some of the latest trends and updates impacting these commodities. Here are some of the top stories with our commentary on the developments.
At the beginning of December 2022, Apple accelerated plans to shift some of its production outside of China. According to the Wall Street Journal, Apple told suppliers to plan more actively for assembling Apple products elsewhere in Asia, specifically India and Vietnam. They are also looking to reduce dependence on Taiwanese assemblers led by Foxconn Technology Group—one of the company’s top suppliers and operator of the world’s largest iPhone factory in China.
There are several factors that contributed to this decision, such as:
This was a significant announcement considering the economic power and force of Apple, and its new strategy to adjust to ‘China +’—where surrounding countries will supplement China’s primary production—could create several impacts.
The transfer of Apple’s supply chain to foreign companies will ultimately come down to how the ratio of benefits measures out. Western manufacturers will only shift its supply chain when China’s production costs and efficiency are lower than those of neighboring countries.
This may come when China’s population ages and a serious shortage of labor force comes about. Or it may come after India has formed a mature and stable manufacturing environment similar to China. In any case, we don’t believe these things will happen any time in the near-term.
However, Apple has started to ask suppliers to build backup capacity overseas. And converting companies such as Yuto Packaging and Shenzhen MYS have started to build plans in Southeast Asia already.
Sustainable aviation fuel (SAF) is part of the promised low-carbon fuels future. SAF has similar chemistry and properties to conventional jet fuel, but it is produced from sustainable sources like biomass or waste materials. Depending on the feedstock and technologies selected, it can reduce lifecycle greenhouse gas (GHG) emissions by up to 80% when compared to conventional jet fuel.
SAF’s lower carbon intensity makes it a relevant solution for reducing aviation GHG emissions. According to the International Energy Agency (IEA), aviation accounted for over 2% of the global CO2 emissions in 2021. Air travel is expected to double by 2050, and jet fuel consumption could account for 8-12% of transportation emissions.
With the expected increase in demand, producers of SAF need to find suitable and affordable feedstock in sufficient quantities. It is a consensus among producers that feedstock diversification is vital. Current technologies tend to focus on organic waste, vegetable oil, and novel crops. However, woody biomass, forestry residues, and other feedstocks are already being considered for scaling up production.
With the increase of SAF (and other biofuels) capacity in the future, availability and pricing of biomass used by the P&P industry could be impacted. At the same time, many facilities could have the opportunity to transition into biorefineries—manufacturing biofuels and other bioproducts in addition to traditional pulp and paper products.
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ResourceWise’s VP of Global Sales, Matt Elhardt, and VP of Sales, Forest Value Chain, Trip Jobe, will be in attendance at International Pulp Week and available to set up meetings to discuss the direction we anticipate China’s pulp and paper market to head toward in addition to the opportunities that have been made available to pulp producers in the biofuels market. You can also discover how our business intelligence can help your company and provide you with the leverage needed to get ahead of your competitors.