The Current StatusThe Current Status

d l fAnd Development of

Paper Industry in Mainland ChinaChina Paper Association

N 1th 2019Nov. 1th 2019

P & PB Production and ConsumptionP & PB Production and Consumption 1、Market demand drives the development of paper industry

2、from shortage to basically meeting domestic demand2 from shortage to basically meeting domestic demand

3、balance between production and demand, maintain a certain amount of import and export

10,000 ton

production consumption

P & PB Production and ConsumptionP & PB Production and Consumption

12000Annual average growth rate of production2.12％

10,000 ton

8000

10000Annual average growth rate of consumption2.22％

6000

8000

2000

4000

0

2000

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

P & PB Production and Consumption 2018P & PB Production and Consumption 2018

production consumptionGrades

2017 2018 ％ 2017 2018 ％

Total （×10,000 ）ton 11130 10435 -6.24 10897 10439 -4.20

1.Newsprint 235 190 -19.15 267 237 -11.24

2.Printing& Writing 1790 1750 -2.23 1744 1751 0.40

3.Coated Paper 765 705 -7.84 634 604 -4.73

4.Household and Sanitary 960 970 1.04 890 901 1.24

5. packaging & wrapping 695 690 -0.72 707 701 -0.85

6.Boxboard 1430 1335 -6.64 1299 1219 -6.16

7.Linerboard 2385 2145 -10.06 2510 2345 -6.57

8.Medium 2335 2105 -9.85 2396 2213 -7.64

9.Specialty paper & board 305 320 4.92 249 261 4.82 p y p p 305

10.Others 230 225 -2.17 201 207 2.99

W i ht P d ti f E h G d VS T t l (2018)Weight — Production of Each Grade VS Total (2018)

Household& Sanitary

Packaging &wrapping6.61%

Boxboard 12.79% Linerboard20.56%

Household & Sanitary9.30%

Coated paper6.76%

Medium20 17%

Newsprint

Printing &Writing16.77%

20.17%

Specialty paper& board3 07%OthNewsprint

1.82%3.07%Others

2.15%

Weight — Consumption of Each Grade VS Total (2018)Weight Consumption of Each Grade VS Total (2018)

Boxboard 11 68% Linerboard

Household& Sanitary

Packaging &Wrapping6.72%

11.68%22.46%

Household & Sanitary8.63%

Coated paeper5.79% Medium

21.20%

Newsprint

Pringting& writing16.77%

Specialty paper& board2.50%Others

1 98%2.27% 1.98%

Raw material structure (10,000 ton)

Total pulp consumption in 2018 is 93.87 million tons : wood pulp consumption is 33.03 million tons, recycled pulp is 54.74 million tons, and non-wood pulp consumption is 6.1 millions.

Pulp productionu p p odu o

Year 2009 2010 2011 2012 2013 2014 2015 20162017 2018

GradesYear 2009 2010 2011 2012 2013 2014 2015 2016

Total (10,000 ton)6733 7318 7723 7867 7651 7906

7984 79257949 7201

882 962 1050 1147：1、Wood pulp 560 716 823 810

882 962966 1005

1050 1147

2、Recycled Pulp 4997 5305 5660 59835940 6189

6338 63296302 5444

829 755 597 6103、Non-wood pulp 1176 1297 1240 1074

829 755680 591

597 610

Reed 144 156 158 143126 113

100 6869 49

bagasse 98 117 121 9097 111

96 9086 90

Bamboo 161 194 192 175137 154

143 157165 191

Wheat straw 676 719 660 592401 336

303 244246 250

others 97 111 109 7468 41

38 3231 30

imported (2018)po ed ( 0 8)

Grades ( 10 000 ton) 2017 2018 ％Grades ( 10,000 ton) 2017 2018 ％

1、Pulp 2372 2479 4.51 2、Recycled paper 2572 1703 -33.79 3、Paper & paperboard 466 622 33.48 p p p 6 33 8

Newsprint 33 48 45.45 Printing & writing 63 85 34.92 Coated paper 45 49 8.89 Packaging & Wrapping 23 21 8 70Packaging & Wrapping 23 21 -8.70 linerboard 137 207 51.09 Boxboard 62 54 -12.90 Household &Sanitary 4 5 25.00

d 6Medium 65 111 70.77 Specialty paper & paperboard 26 30 15.38 Others 8 12 50.00

4、Paper products 19 18 -5.26 p pTotal 5429 4822 -11.18

Exported (2018)Exported (2018)

G d ( 10 000 t ) 2017 2018 ％Grades ( 10,000 ton) 2017 2018 ％

1、Pulp 9.87 9.99 1.22 2、Recycled paper 0.15 0.06 -60.00 3 Paper & paperboard 699 618 11 593、Paper & paperboard 699 618 -11.59

Newsprint 1 1 0.00 Printing & writing 109 84 -22.94 Coated paper 176 150 -14.77p p 176 150 14.77 Packaging & Wrapping 11 10 -9.09 linerboard 12 7 -41.67 Boxboard 193 170 -11.92 Household &Sanitary 74 74 0 00Household &Sanitary 74 74 0.00 Medium 4 3 -25.00 Specialty paper & paperboard 82 89 8.54 Others 37 30 -18.9237 30 18.92

4、Paper products 307 323 5.21 Total 1016.02 951.05 -6.39

Outlook

Capita consumption level of paper and paperboard is an important sign to measure a country's economy andimportant sign to measure a country s economy and civilization. The consumption of paper is directly and indirectly affected by various fields of the whole society. At present, the developed countries in the world have a developed paperdeveloped countries in the world have a developed paper industries, which is listed as one of the pillar industries.

Capita consumption is an important indicator to measure a p p pcountry's comprehensive economic strength. In 2018, the capita consumption of paper and paperboard in the world is about 57 kg / a, while that in China is 78 kg / a.

Although China‘s capita consumption is higher than the world average level, but it is lower than the capita consumption of 150 300 k / i d l d t i th i till150-300 kg / year in developed countries, so there is still a huge space for development.

Main factors in long term：

Recourses Recourses

Environment

Structure

Main factors in short time：Main factors in short time：

Environmental protection policy

Import policy on recycled paper

I d t i l t f Industrial transfer

Development of electronic media

Trade frictions

Thank you !Thank you !