Some paper mills may be forced to stop production

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Some paper mills may be forced to stop production after the pulp price rises.

the continuous rise in the paper price has not brought too many surprises to the paper enterprises, because the pulp as raw material has risen more rapidly. Some people in the paper industry admitted that with the increase of cost pressure, some paper mills will be forced to stop production

the increase of pulp is 1.5 times that of paper price

the latest statistical data show that some paper prices are already moving towards the historical high in 2008. Last week, copper paper rose by 5.7%-1.5% in a single week, and double offset paper rose by 1.4%-2.9%. The Ministry of science and technology, ICT and future planning of South Korea announced that the packaging paper of this scientific research achievement increased more significantly. The weekly increase in the price of white board paper was up to 9.8%, and the weekly increase in the price of white card paper was up to 2.9%. The rally continued this week

however, the rise of paper price has not increased the profit margin of paper enterprises, because if the oil is not used properly, the pulp price is rising at a faster rate

this round of rise in pulp prices is due to the Chilean earthquake, which accounts for 8% of the global commodity pulp production capacity. It is reported that the pulp production capacity of Chile closed due to the earthquake was 3.53 million tons, accounting for 6% of the global production capacity. The international pulp price has risen sharply, and the domestic pulp price has also risen sharply in the past two days, up to 700~1000 yuan/ton. Overall, the increase of pulp is about 1.5 times of the paper price in the same period

it will take about threeorfour months to restore supply after Chile resumes production, repairs power, roads and wharves, and counts the shipping date. During this period of time, the pulp price will continue to go up. The person in charge of a paper mill in Fujian that has both pulp and paper businesses said. He disclosed that the price of the short fiber pulp produced by the company will be raised again next week

the pulp price has risen before the paper price, and the profit of paper enterprises has been very thin. At present, the price of imported pulp has exceeded 7000 yuan/ton, and the whole wood pulp paper has only been sold for 7000 yuan/ton, basically making no money. The above-mentioned person in charge told that at present, the paper mill is mainly relying on early-stage inventory to maintain its operation, and there is a strong demand for price increase. He disclosed that, following the previous round of price adjustment, several major cultural paper manufacturers are planning to carry out the second round of price increase to visually verify Hooke's law and inspect the cold work hardening phenomenon, so as to alleviate the cost pressure

the transfer cost is questioned

but at the same time, whether the paper mill can smoothly transfer the cost is questioned

the paper products with good demand at present, such as copper plate and white card, have relatively good transfer ability; However, when the supply and demand of the remaining paper varieties are saturated, it is difficult to completely release the cost pressure to the downstream. Lishixin, a paper industry analyst at Guosen Securities, said that in this round of rising pulp prices, Forest Pulp and paper integrated enterprises can largely make up for the profit losses of the paper business through the pulping business, and benefit from it. The pulping business in the Southern timber producing area that adopts the method of outsourcing timber will gain a net profit increase of 45-55%. However, he also mentioned that due to the overall saturation of market supply and demand, the workshop enterprises with low self-sufficiency rate of pulp cannot completely transfer the cost, so they will inevitably face great operating pressure

the above-mentioned paper mill people also believe that due to the continuous expansion of paper production capacity in recent years, the higher inventory pressure will continue to suppress the downstream market price. It is believed that some factories will be forced to stop production in the future. Only after the output drops and the market supply and demand pattern changes gradually can the price rise smoothly

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