Currently, products such as cultural paper and coated paper are in high demand and full of orders.
Since March, the price of pulp imported from China has risen strongly, and the two-week strike by the Finnish Transport Workers Union, which began on March 11, has undoubtedly become a catalyst for the continued strengthening of the spot price of pulp.
In this context, starting with large-scale domestic paper companies such as Sun Paper and Chenming Paper, a new wave of price increases for cultural paper companies has formed, with increases ranging from 100 yuan/ton to 200 yuan/ton.
“We are currently in the traditional peak season for cultural paper. With the cost support brought about by rising pulp prices, the price of cultural paper is expected to continue to rise. Cultural paper industry leaders, which account for a relatively high proportion of self-supply pulp, are expected to benefit from this round of rising paper prices and achieve profitable expansion.” According to the Orient Securities Research Report.
The paper industry continued to pick up in the fourth quarter of 2023. Recently, the industry set off another wave of price increases. A number of listed paper companies also participated. In response to the survey, some companies said that currently there is strong demand and full orders for products such as cultural paper and coated paper.
Recently, Chenming Paper announced a price increase of 200 yuan/ton for the company's cultural paper series products. Previously, Chenming Paper had already raised prices for some cultural paper series products in late October. This round of price increases is also regarded by the industry as a good response to the implementation of the price increases for cultural paper products in the early stages.
In addition to Chenming Paper, paper companies such as Sun Paper, Huatai Paper, and Yueyang Forest Paper have also announced price increases for various types of paper. The price increase is mostly 200 yuan/ton, and the execution period is mostly mid-late November. Judging from the reasons driving up paper prices in this round, high production costs and falling product inventories are the main factors supporting the current strong paper prices. The reasons given by paper companies are also mostly explained as “affected by the rise in raw material prices.”
Galaxy Securities pointed out that March is the traditional peak season for the cultural printing paper market. Publishing tenders are about to begin, and some party building orders will be released. Short-term demand is expected to be released, and it is optimistic that the price of cultural paper will rise and profits will improve.
Dongxing Securities said that at the beginning of this year, the price of cultural paper declined somewhat due to the off-season. As the traditional peak season from March to May approaches, paper prices ushered in an opportunity to rise. In late January, major cultural paper companies announced increases in paper prices of 100 and 200 yuan/ton in February and March, respectively. At the end of February, price increases were implemented, and the effects of the peak season on the demand side were initially evident.
Industrial paper-related concept companies:
Nine Dragons Paper (02689), Liwen Paper (02314), Sunshine Paper (02002), Chenming Paper (01812)