Source: Prospective Industry Research Institute
Pulp futures market fell on the first day of listing
On November 27, 2018, the 50th commodity futures market in China's futures market, pulp futures, officially went online on the Shanghai Futures Exchange. According to the previous announcement, the pulp futures have six contracts to participate in, namely SP1906, SP1907, SP1908, SP1909, SP1910, SP1911, and the benchmark price of the contract is 5980/ton.
The pulp futures contract trades at 10 tons/hand, the minimum change price is 2/ton, the trading margin is 7% of the contract value, and the price limit is 5%. However, as of the first trading day, the closing price (SP1906) was 10% of the benchmark price, which was 5382/ton. As of 14:20 pm on November 28, the SP1906 contract price was 5,242/ton, and the price limit was 12% of the benchmark price.
Downstream market demand is weak, paper mills are not very motivated
The direction of funding is driven by current fundamental factors. From the perspective of the downstream demand market, the downstream demand for finished paper is not optimistic. The stocks of raw materials, finished products and semi-finished products of the paper mills are very high. Some domestic paper and cultural paper manufacturers are shut down for maintenance, and the paper mills are not in smooth condition. There is also a high inventory pressure, and the enthusiasm for the demand for wood pulp procurement is also weak. In recent days, China's pulp stocks are at historically high levels, and the supply of goods is sufficient, which has become the main factor in suppressing domestic pulp prices. From the current inventory of Qingdao, Baoding and Changshu, it is already at a high level of 1.41 million tons, far above the average of 800,000 tons.
According to the survey data of the China Paper Association, in 2017, there were about 2,800 paper and board production enterprises nationwide, and the national paper and board production volume was 111.3 million tons, an increase of 2.53% over the previous year. The consumption was 108.97 million tons, an increase of 4.59% over the previous year. In 2012-2017, the average annual growth rate of paper and board production and consumption was 1.67%. This shows that China's downstream market demand for pulp is growing at a small rate, and the overall market is more pessimistic.
Pulp import dependence increases paper mills' low profit
In addition, the high dependence on pulp imports is also one of the reasons for the low output of paper mills. According to the raw materials (the type of fiber raw materials used), pulp is mainly divided into wood pulp, waste paper pulp and other fiber pulp (rice straw pulp, bamboo pulp, mash, etc.), and the high dependence of wood pulp imports leads to high cost and low profit of paper mills. In China, where the production capacity of wood pulp is limited and the policy-oriented environmental protection policy is tightening, the import dependence has increased year by year, reaching 66% in 2017.
In terms of profit of papermaking enterprises, the gross profit margin of household paper is currently around 8%, the gross profit margin of double-bonded paper is about 4.3%, and the gross profit margin of double-copper paper is about 4.8%.
Where is the pulp market breakthrough?
go out. In the face of the above-mentioned difficulties, what should the pulp industry want to break through? First of all, in view of the high dependence on wood pulp imports, the author believes that China's pulp enterprises should actively go out, China's forest resources are not rich, we can go State-funded forest-rich investments, such as neighboring South Asian countries, Laos, and Vietnam, have significant advantages in producing raw materials and costs.
Look at the market. According to the survey data of the China Paper Association, although the demand for newsprint and household paper has been sluggish with the popularization of electronic products in recent years, with the rapid development of the express delivery industry, the demand for cardboard and corrugated paper has been increasing, and the paper is occupied in 2017. The total consumption of goods is 23.03% and 21.99%, which is a strong shot for the sluggish pulp market!
Editor in charge: Zheng
This article is posted on the website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description.
Article source address: http://
Our Aluminum Fence product line is fabricated from 6063 series aluminum alloy material. Aluminum is a lightweight metal with impressive strength.The post is aluminum and has a powder coat finish to match the fence. This makes our residential aluminum fence perfect for installations around pools and other wet areas Aluminum Fence is a mature and proven fence system that is the modern alternative to wood, PVC or WPC. It combines the style, privacy and aesthetics of wood with the technology and durability of aluminum and fireproof.
Fence Post & Pedestal,Aluminum Metal Fence Post,Fence Post Wood,Wood Fence Post
FOSHAN GD ALUMINUM CO LTD , https://www.gd-fence.com