In 2015, China's forest area was 208 million hectares, accounting for 4% of the world's total forest area, ranking fifth in the world. The distribution of forest resources in China is relatively concentrated, mainly in the northeast, southeast and southwest regions. Among them, the northeast region is dominated by coniferous forests and mixed coniferous and broad-leaved forests, the southeast region is dominated by pine and fir forests, evergreen broad-leaved forests and economic forests, and the southwest region is dominated by subalpine coniferous forests and mixed coniferous and broad-leaved forests.

The distribution of forest resources in China is concentrated in the northeast, southeast and southwest. The forest coverage rate of China is low, only 22.2%, which is lower than the world average of 31%. And the forest area per capita is only 26% of the world's per capita level, only 0.15 hectares, ranking 146th among 233 countries and regions in the world. China's forest productivity is low, and the forest storage per hectare is only 69% of the average, and the planted forest storage per hectare is only 52.76 cubic meters, while the withering loss is huge, amounting to 118 million cubic meters per year.

At present, only 13% of our country's forest land area can be harvested, and only 23% of the harvestable reserves. The relative lack of wood resources caused by this resource endowment has limited the development of the wood pulp industry from the root. Compared with the resource endowment of the countries on which the world's large pulp enterprises are based, China's overall forest cover or per capita forest area is much lower than Finland, Russia, Brazil, Sweden, Indonesia, Canada, Chile, the world's major pulp producing countries, the development of the domestic wood pulp industry has obvious resource ceiling.

With the relative lack of forest resources, China has been strengthening forestry construction and forestry resources development and management in recent years. The national 13th Five-Year Plan stipulates a total of 25,436,000 cubic meters of harvestable plantation forests and natural forests, a decrease of 6.28% from 27,105.4 in the 12th Five-Year Plan. After the national "13th Five-Year Plan" was introduced, forestry departments around the country also launched forestry development and management rules one after another. These rules have a lot in common for the development of forestry resources, mainly in: 1. the maximum limit of logging accumulation; 2. full coverage of natural forest protection, a complete ban on commercial logging; 3. the establishment of a strict compensation forest system, "how much to cut, how much to plant". These regulations have a direct impact on the supply of raw materials for pulp companies.

In order to solve the problem of upstream raw materials, China formulated the development plan of "forest and paper integration" in 2004, and promoted the extension of paper enterprises to the upstream industry, combining pulp, paper, afforestation, forestry, harvesting and sales to form a virtuous cycle of industrial chain. In addition to the layout of each major forestry resources production areas, with national support, financing and other measures to facilitate the closure of small enterprises, to promote the benign development of the industry.

Review the historical trend of pulp prices, found that even if demand is relatively stable, but in recent years the pulp price plunge, basically experienced a large expansion of production capacity before, after the pressure of high inventory, and then with the slowdown in capacity expansion, inventory gradually digestion, pulp prices from the bottom gradually back up.