Already booming China tissue investments will continue through 2016, leading to increased overcapacity as prices continue to fall—unless improved capacity disciplines emerge
Tissue investment in China has steadily increased over the past few years as tissue consumption, though growing strong, has fallen behind. Current company plans suggest that investment in this market will continue and reach its peak between 2015-2016.These and other developments were published today in "Exploding Chinese Tissue Business - Opportunities and Challenges", a new study by RISI—the leading information provider for the global forest product industry.
"This trend could cause substantial consequences in the domestic market as prices continue to fall," said Esko Uutela, Principal Tissue Economist at RISI and lead author for the study.
"Tissue consumption has been growing strong in China but we're seeing an increase in investments that has really exploded in recent years. For example, effective tissue capacity increased 800,000 tonnes last year while sustainable market growth was less than 500,000 tonnes over the same period. Similarly, we've seen prices lower over the last few years despite increased costs," continued Uutela.
Identifying prospects for tissue export growth, the study details these and other developments expected until 2023 with a forecast for each of the 8 economic sub-regions in China.
Analysis included in Exploding Chinese Tissue Business - Opportunities and Challenges:
Overview of tissue market drivers, covering socio-economic factors, retail environment and infrastructure in China
Analysis of the China tissue market by region, examining consumption, capacity, production, raw material base, company plans and future developments
Analysis of regional imbalances occurring now and expected in the coming years
Forecast to 2023 and 13 years of historical data with consumption details by main grade and region
Extensive list of mills with capacities and technical data by province
Detailed company analysis, including key retailers and distribution channels and an up-to-date project list
