The traditional peak season is approaching, cultural paper price increase letters are frequently issued, and the industry expects paper companies to pick up their profits in the second quarter
According to the recent price increase letters on cultural paper issued by leading paper companies such as Sun Paper, Chenming Paper, and Yueyang Forest Paper, starting from March 1, the cultural paper products produced by the above companies will be sold on the basis of the current price. �100 yuan/ton. Prior to this, Chenming Paper, Sun Paper, etc. had raised a round of cultural paper prices on February 15. chocolate box
“In January this year, the cultural paper market was almost flat, and supply and demand fell into a stalemate. In February, with the frequent issuance of price increase letters by paper mills and the coming of the traditional peak season for cultural paper, the market mentality has been boosted. The market game situation may ease in the short term.” Zhuo Chuang Information analyst Zhang Yan told the “Securities Daily” reporter.
When analyzing the performance trend of paper-making companies, several institutions said that the paper-making industry is facing the dual benefits of gradual recovery in demand and release of cost pressure. It is expected that the profits of paper-making companies will rebound significantly in the second quarter of this year.Flower box
Zhuo Chuang Information statistics show that as of February 24, the average market price of 70g wood pulp offset paper was 6725 yuan / ton, an increase of 75 yuan / ton from the beginning of February, an increase of 1.13%; the average market price of 157g coated paper was 5800 yuan Yuan/ton, an increase of 210 yuan/ton from the beginning of February, an increase of 3.75%.
Affected by factors such as the expectation of the peak season and the pressure on industry profits, since February, large-scale paper mills have successively issued price increase letters, planning to raise prices by RMB 100/ton to RMB 200/ton in mid-February and early March.chocolate box
On February 27, the reporter connected to the securities department of Chenming Paper, and the relevant staff told the reporter that the company’s price increase in mid-February had already been implemented in downstream orders. Zhuo Chuang Information statistics show that part of the price increase letter that plans to raise prices in mid-February has been implemented, and dealers in some areas have also followed up the increase, and market confidence has been slightly boosted.cookie box
Zhang Yan told the “Securities Daily” reporter that from the perspective of supply, in February, both large-scale paper mills and small and medium-sized paper mills have basically resumed normal production. In terms of inventory, the downstream printing and publishing industry is driven by the price increase letter, and has a certain stocking behavior. Therefore, some paper mills are receiving orders well, and the inventory pressure has been alleviated to a certain extent.
Zhang Yan believes that from the perspective of demand, cultural paper will usher in the traditional peak season in March because the publishing orders will be released one after another in March. In addition, social demand also has recovery expectations, so there is a certain positive support for demand in the short term.
On the cost side, good news has been coming out frequently recently, especially as the two major pulp producers of Finland, UPM and Chile’s Arauco, have successively implemented capacity expansions. The industry is expected to add nearly 4 million tons of pulp production capacity to the global pulp market.Candle case
Soochow Securities stated that after the Spring Festival, the speed of resumption of work, production and school has accelerated, and the price of bulk paper has started to increase. It is optimistic about the bottom reversal of demand. At the same time, the quotation of softwood pulp remained stable, and the expansion of production by international major manufacturers such as Arauco in Chile will alleviate the shortage of global pulp supply, and the cost of ocean freight will drop, and the cost will drop. We are optimistic about the release of profitability of paper companies.
On the whole, with the advent of the traditional peak season of cultural paper, the competition between supply and demand in the cultural paper market will ease in the short term. Zhang Yan told reporters that in 2023, under the background of falling pulp prices and recovering demand, the profits of the offset paper industry and the coated paper industry in cultural paper are expected to pick up.
Post time: Mar-01-2023