The Study On The Development Of China’s Pulp Futures

China is the largest country for the pulp consumption and the production is second in theworld, second only to the United States. There will be a large space for the development ofChina’s paper industry in the future. Because of the relative lack of forest resources, the paperindustry can not meet the demand of fiber materials, long-term rely on imports, China is thelargest country for pulp imports. China has a huge trade but without a corresponding pricing.The huge demand of China easily be the object of the speculation of international speculators.Chinese companies often passively accept the price, resulting in the loss of business, companiesneed the tool to avoid price risk and win the pricing in the pulp trade. With the improvement ofenvironmental standards in China’s paper industry, the industry’s investment in environmentalprotection increasing, all paper-making enterprises face cost control. There is an urgent need forcost control tools. The pulp futures can not only provide risk management tool forpaper-making enterprise, but also an important way for pulp pricing.Base on the theory of the development of new varieties futures and the specificcircumstances of the pulp market in China. This thesis put forward the need for China to carryout the pulp futures the favorable conditions also the possible barriers. Through theconsumption (production) of paper and paperboard and GDP regression and prediction, theresults show that the China’s paper industry has huge development space in the future. Pulpfutures can not only provide a risk management tool for paper-making enterprises but also aeffective way to fight international pricing, at the meanwhile pulp futures may broaden theforestry financing channels in China and expand the capacity of China’s futures market. Chinaalready has the size of the spot market for the development of pulp futures, pulp industry haslong chain structure can bring large number of participants, the pulp electronic market canprovide a reference, the incentives about the development of new varieties of futures providedfavorable conditions for China to carry out the pulp futures. The obstacles for pulp futuresmainly include: lack of forest resources in China will constrain pulp raw materials; there arestill some difficulties for pulp standardization, especially waste paper pulp, China still have nouniform national recycling standards for waste paper; the segments of pulp market are small,the proportion of pulp for transaction is low; the structure of China paper industry stillunreasonable; the development of forestry-paper integration may reduce the hedging needs;China implement strict approval system for the list on the new varieties futures.Although there are a series of difficulties for the development of the pulp futures, but thatcan not negate its feasibility. This thesis argues that the development of pulp futures shouldspeed up the adjustment of industrial structure of China’s paper industry; develop the nationalstandards of waste paper separation; consider choosing wood pulp such as bleached softwood pulp, bleached hardwood pulp or kraft pulp as subject for pulp future because they all havelarge trading volume, a wide range of uses, and trading practice of futures. Encourageenterprises to participate in futures hedging. Reform China’s approval system of new varietiesfutures listed.