China Bracing for OCC, Plastics Ban, Paper360º November/December 2020

By the time you’re reading this, it will have been almost a year since the spread of the coronavirus started in China. And though the pandemic crippled Chinese markets early on, at press time (in October) the country’s pulp and paper industry has avoided major impacts due to COVID-19.

Since mid-March, the consumer goods price (which includes rice, eggs, vegetables, etc.) is overall in a declining pattern and back to a “nor-mal” status. Not only consumer goods, but also restaurants and even high-end luxury goods, are growing again. By the end of March, Volkswagen CEO Herbert Diess had commented that, besides China, VW had almost no revenue from the rest of the world. And giant Chinese hot-pot food service company, Haidilao, remains 65 times P/E after the COVID-19 spread. All of this signals a stable, “back-to-norm” Chinese economy.

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