The Zhitong Finance App learned that paper stocks picked up in early trading. As of press release, Sunshine Paper (02002) rose 7.06% to HK$1.82; Chenming Paper (01812) rose 3.43% to HK$1.81; Nine Dragons Paper (02689) rose 1.61% to HK$3.15; and Liwen Paper (02314) rose 1.3% to HK$2.34.

According to the news, recently, several household paper companies in Hebei issued shutdown notices. Industry insiders said that the shutdown at this time was a helpless act of “limited production and price insurance.” Huatai Securities pointed out that against the backdrop of increased fluctuations in raw material prices, enterprises with an integrated upstream and downstream layout are expected to gain more advantages. It is expected that by 2024, supply and demand in the paper industry will gradually reach an inflection point, and enterprises with an integrated upstream and downstream layout will consolidate their competitive advantage.

Orient Securities pointed out that in terms of bulk paper, it is currently in the traditional peak season for cultural paper. If pulp prices continue to be strong, cultural paper prices are expected to achieve cost transmission, and 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. In the specialty paper industry, the current price of high-end decorative base paper is still high, and there are frequent price increase letters for consumer paper for daily use. The rise in pulp prices will help enhance the stability of the price of decorative base paper and promote the implementation of price increases for consumer paper products for daily use.