Pulp raw materials are in short supply, and paper companies have raised prices over and over again
Recently, news of crazy prices of paper and paper raw materials has gone round after round.
Since April this year, the four major tissue paper companies Jin Hongye, Hengan, Vinda, and Zhongshun Jierou have successively issued price increase letters, and the proposed price adjustments are basically more than 10%.
On May 17, Nine Dragons Paper, which ranked No. 1 in the packaging paper industry in China, announced the third round of price increases in May. Within a week, Nine Dragons Paper’s base paper prices rose on average every three days. Major domestic cultural paper companies and traders also issued a number of price increase letters in May. Among them, the price of cultural paper generally increased by 200 yuan/ton, and the price of white cardboard increased by 1,000 yuan/ton.
It is reported that the price increase of various papers is because since March, the supply gap caused by the reduction of long-fiber raw materials and imported paper has begun to appear, and the price of pulp raw materials has risen, causing the price of pulp and paper to fall, and some paper mills can only Downtime.
The skyrocketing momentum of paper prices has spread to stock prices. As of May 24, as of the close, Tsingshan Paper, Meiliyun, Yibin Paper, Yueyang Forestry and Paper have their daily limit, Annie Stock, Chenming Paper rose more than 5%, Shanying International, Guanhao High-tech, Sun Paper, etc. Stocks have risen to varying degrees. Year-to-date, the papermaking block index has risen by more than 20%.
Paper prices have soared, and the chain reaction has continued
The rise in paper prices started from the rise in pulp prices. From July of last year to March of this year, the price of wood pulp rose by an average of more than US$400/ton, an increase of 37%, which led to a substantial increase in the production cost of paper-making enterprises, and the price of paper products for paper-making enterprises rose accordingly. Since the beginning of this year, raw paper companies have begun to adjust prices.
In April this year, data from the National Bureau of Statistics showed that the ex-factory price of paper and paper products increased by 0.3% month-on-month, 5.0% year-on-year, and 2.0% year-on-year from January to April.
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