Another price rise of waste paper and wood pulp may lead to changes in the supply pattern of paper raw materials

The reduction of foreign waste leads to the rise of domestic waste price, which leads to a significant reduction in the profit space of small and medium-sized paper enterprises without cost advantage, which will accelerate the improvement of industry concentration.

Previously, under the high price of national waste and high inventory pressure, Guangzhou Wanlida, a well-known paper mill in the Pearl River Delta, took the lead and began the strategic adjustment of taking retreat as advance. Under the current uncertain market, Wanda looks like a small and medium-sized paper enterprise that voluntarily withdrew.

"At present, the industry concentration in the field of packaging paper is still relatively low, and this problem is being paid attention to by some large enterprises." According to Liu Jian, in order to seize more raw materials, powerful large paper enterprises support the purchase price of national waste, which makes small and medium-sized enterprises unable to get cheap national waste. "In this case, the price of finished paper can not go up, and the profit space of small and medium-sized enterprises will be greatly reduced." At the same time, in order to seize more market share, large paper enterprises have many new capacity plans, which will accelerate the exit of small and medium-sized enterprises.

In terms of wood pulp, APP announced an increase in pulp price, but at the end of finished paper, due to factors such as overcapacity, the price of finished paper such as cultural paper and household paper is difficult to rise in the short term, which will undoubtedly further reduce the profit space of small and medium-sized enterprises. "The living space of small and medium-sized enterprises will be squeezed out, and the shuffle of uncoated paper will be accelerated." Pang chuanshun predicted.


Source: Securities Times