The Zhitong Finance App learned that paper stocks generally rose today. As of press release, Nine Dragons Paper (02689) rose 9.4% to HK$3.84; Lee & Man Paper (02314) rose 4.58% to HK$2.51; and Chenming Paper (01812) rose 1.64% to HK$1.86.

Orient Securities pointed out that in terms of bulk paper, 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, 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. Higher 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.

Guotai Jun An pointed out that in the future, as the cost of wood pulp gradually rises, we will pay close attention to the implementation pace of price increases for segmented paper types, and categories with better supply and demand patterns will have better price compliance capacity. In addition, the 2024H2 homemade pulp production line and the introduction of new overseas broadleaf pulp production capacity may drive wood pulp prices downward, and price changes are worth paying attention to.