Chinese Boxboard Market to Continue Growing through 2016
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China is now the largest boxboard consumer in Asia, accounting for more than 50% of total Asian boxboard consumption since 2004. Chinese boxboard demand is expected to continue growing through 2016, according to the new report by RISI, Brussels, Belgium, titled China Boxboard Study.
In the study, "we have examined the macroeconomic trends contributing to this growth, as well as the growth fundamentals in 15 major downstream industrial segments," said Ken Waghorne, VP of Packaging at RISI.
On the supply side, China's share of total Asian capacity increased from 30% in 2000 to nearly 60% in 2010. The nation's capacity growth is expected to reach a record high of 12.8% in 2012, and will be even higher in 2013.
"For virgin cartonboard grades, capacity expansion is expected to hold a double-digit pace in the medium term, which is far above the demand growth trend. Oversupply will force producers to expand channels into external markets, making China a net exporter of boxboard," said Han Yao, economist, Asian Paper Packaging, RISI, and the study's lead author. "As China becomes a more influential player in the global boxboard market, it will be critical for boxboard manufacturers and suppliers to the industry to better understand what drives the market here," he added.
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