China Business Network
Recently, the price of raw paper and waste paper has risen again. Shanying Paper (600567.SH), Chenming Paper (000488.SZ), Bohui Paper (600966.SH) and other major paper companies have raised the recycling price of waste paper, and announced that the price of raw paper will be adjusted online. The range is 200 yuan / ton.
Behind the price increase, the performance of paper companies is not ideal. Among them, Bohui Paper expects net profit attributable to shareholders of listed companies to decrease by 67.29% year-on-year in 2018. The main reason for the decline in profits was the increase in raw material prices and the decline in the selling price of the products.
"The current price increase is not in short supply, but the paper market is further reduced due to environmental protection and raw materials. The major paper companies can only raise prices and protect profits." A listed paper company executive is accepting "China's business." The reporter said in an interview that the price of raw paper rose to the downstream paperboard factory, while the bargaining power of the paperboard factory was weak, and only passive price increases were made. In the future, paper companies may extend their business to downstream paperboard factories and improve the industrial chain to increase profits.
Raw materials push paper prices up
On February 17, APP (China) Industrial Paper Company took the lead in issuing price increases. On February 18th, Chenming Paper and Bohui Paper also followed suit, and the price increase was 200 yuan/ Ton.
The price increase letter issued by Bohui Paper on February 18th shows that from February 25, 2019: the "Copper Paper Jam, White Cardboard" series products produced by Shandong Company, the price is raised by 200 based on the current execution price. yuan / tonne. The price of “white cardboard†series products produced by Jiangsu company is raised by 200 yuan/ton on the basis of the current implementation price.
"The big factor behind this round of price increases is that the price of waste paper keeps rising and the market price rises. The paper enterprises push the price of the original paper to be adjusted online. There will be more manufacturers to follow up." The paper company executive told reporters that domestic waste paper The price increase originated from the implementation of the domestic ban on foreign waste import policy.
According to the data of the General Administration of Customs, in 2018, China imported a total of 17.055 million tons of waste paper, down from 25.72 million tons in 2017, a decrease of about 33.8% year-on-year. The decline was the highest in recent years. Compared with 2012, domestic imports. The amount of waste paper has fallen by nearly half.
The above-mentioned paper enterprise executives said that in 2019, the ban on foreign garbage entry policy will not waver, the supply-side import policy will continue to tighten, and it is expected that the foreign-imported import quota will be reduced by more than 30% by 2019. By 2020, foreign waste imports will be completely banned. Waste paper is limited in increments.
According to the data monitoring of the business community: on February 19, the purchase price of the domestic waste yellow paper market began to increase substantially from south to north, while the price increase of waste paper in East China was particularly obvious. On the same day, the average price of domestic waste yellow paperboard was 2,341.43 yuan / ton, and the price increase ranged from 30 to 110 yuan / ton. Compared with the previous day, the purchase price of the waste yellow paper paper market rose by 2.14%.
In fact, from February 19 to 20, Nine Dragons Paper, Shanying Paper, and Lee & Man Paper (02314.HK) raised the purchase price of waste paper again. Subsequently, more than forty paper mills across the country raised the acquisition of waste paper. price. Among them, from February 19th, the price of Chongqing Nine Dragons Paper Waste Paper was raised by RMB 50/ton.
Profit space contraction
Behind the price hikes of paper companies, the rising cost has squeezed the profit margin.
Recently, major paper companies have successively released performance forecasts, and most companies expect a decline in earnings in 2018. On February 1, Nine Dragons Paper announced that for the six months ended December 31, 2018, the profit attributable to equity holders of the company is expected to be no less than 2.4 billion yuan, a decrease of about 45% from the same period in 2017. Reduced by 1.95 billion yuan.
As for the reason for the decline in profits, Nine Dragons Paper said that it was mainly due to the rise in raw material prices and the decline in the price of products.
According to the 2018 performance pre-announcement announcement issued by Bohui Paper, the company expects net profit attributable to shareholders of listed companies to reach 280 million yuan in 2018, a decrease of 576 million yuan compared with the same period in 2017, a decrease of 67.29%. The company said that due to the complicated and volatile domestic and international economic situation, in the fourth quarter of 2018, the market demand was less than expected, the company's main product sales price decreased, the cost of raw materials for inventory was high, and the reduction of raw material prices lags behind the production cost. The performance has dropped significantly year on year.
As early as January 2019, the Goldman Sachs Group released a report saying that the view on the Chinese paper sector turned to prudence. It is expected that the supply and demand of cardboard paper will be greatly deteriorated, and the ratings of Nine Dragons Paper and Lee & Man Paper will be lowered.
Zou Zhidan, a researcher at China Research Institute, told the China Business News that the domestic packaging paper production capacity was seriously oversupplied and the demand fell in a cliff-like manner. Domestic waste paper prices are high, low-cost waste credits are very strict and subject to many restrictions, and the actual demand for domestic packaging paper is gradually declining, paper giants are eager to reduce costs and look for new profit growth points.
“With the continuous release of production capacity, the demand-side market has started to weaken since October 2018, consumption in the domestic market has declined, and demand has declined, resulting in a decline in prices.†The paper company executives told reporters that real estate and cars from 2018 The real economy that has driven the packaging paper industry has declined, and the overall economic situation has been adjusted. Paper competition will continue in the first quarter of 2019.
In addition, on July 10, 2018, the Office of the US Trade Representative listed a list of 10% tariffs on Chinese 200 billion US dollars of goods. Pulp, paper and cardboard and paper products are included in the list, covering almost all paper products exported by China to the United States, including newsprint, cultural paper, wrapping paper, household paper, etc., making the downstream demand for cold weather worse. ".
Extend the industry chain stop loss?
“In fact, in 2016 and 2017, paper companies’ profits have been growing at a high rate. In 2018, market demand is weak, downstream paperboard mills are purchasing less, and raw material costs are increasing to further reduce paper mill profits. Paper mills can only improve profits. The price of the product.†The paper company executives told reporters that next, the major paper companies will work hard on cost control. Now many companies have already made advances in upstream raw materials and achieved good results. However, it may be down to the downstream paperboard factory. A tuyere.
The executive said that now the paper mills can be left bigger and stronger, and the market even has a monopoly situation, which leads to the pricing power of the original paper in the hands of a few leading paper companies. "The leading paper enterprises will not have a price war. Everyone is already familiar with the market. Only a tacit price will win the profits. There will be no price competition, and the pressure will only be transmitted to the downstream paperboard factory. As for the paperboard factory, how to operate the market. It will not affect the profit of paper mills."
"On the basis of guaranteeing the price, sales have become a problem for the major paper industry." The paper company executives said that the sales volume is mainly from the downstream paperboard factory, and the opportunity to extend the downstream link has come.
In fact, Shanying Paper is currently a well-integrated company. The company's papermaking business and downstream packaging business accounted for 72% and 21% of revenue respectively in 2017. The reporter noted that in 2018, Shanying Paper acquired the WPT, a Dutch waste paper purchase company, to improve the closed loop of the industrial chain of waste paper-base paper-packaging-waste paper.
In addition to Shanying Paper, Nine Dragons Paper, the largest manufacturer of boxboard base paper in China, has already extended its business layout to downstream paperboard plants. On July 15, 2018, a "Cardboard Test Machine Quotation" of the company's Xiaolong Intelligent Packaging (Dongguan) Co., Ltd. was circulated in the workshop. The price of the quotation is at least 10% lower than that of the peer, and the quotation includes tax, but only if the advance payment is made.
The above-mentioned paper enterprise executives told reporters that in fact, in the case of a relatively weak market at the time, the quotation affected the profitability of the paperboard industry to a certain extent, and had a greater impact on the paperboard market order.
To this end, on July 19, 2018, the Pearl River Delta Cardboard Factory Association (Proposal) issued the "Proposal" showing that since June 2018, due to the impact of Sino-US trade friction and complex domestic environment, the operating rate of paperboard factories is seriously insufficient. The volume and price have fallen, and most of the secondary plants are already in a state of serious losses. In addition, the high risk and low profit of the paperboard factory, the brilliant report or high profit level of the paper mill in the past two years is inseparable from the service and contribution of the secondary paperboard factory, and the profits actually retained in the paperboard factory are very poor.
The above-mentioned "Proposal" mentioned that in the face of capital predators and complex markets, the majority of cardboard and cardboard industry colleagues should warm up and cope with each other to jointly maintain the development and prosperity of the packaging industry; and said that industry leaders should have more responsibility and take the lead. Maintain a good market order and not be a barbaric industry scavenger.
Since then, Nine Dragon Packaging has issued a letter of informing that the original test machine order price will only be executed until July 24, 2018, and the subsequent orders will be based on the normal production price and subject to mutual confirmation.
The paper company executives said that although Nine Dragons Paper finally withdrew, it has already released a signal to the market, and perhaps the major paper mills will concentrate on the downstream.
This article is posted on this 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://
Car Diffuser,Car Oil Diffuser,Car Perfume Diffuser,Car Fragrance Diffuser
Jiangsu Raymeel Home Decoration Co., Ltd. , https://www.jsraymeelhome.com