Packaging paper supply decreases and superimposed demand peak season, the market outlook for the pap

In the last week of June, domestic packaging paper prices continued to rise. With the arrival of the industry’s traditional peak season, packaging paper prices will continue to rise. In addition, currently affected by the pre-increasing effect of performance, the industry’s prosperity in the paper industry is expected to continue to improve. A-share Zhongshan Eagle Paper, Bohui Paper, Chenming Paper, Sun Paper, etc. can focus on

In the last week of June, domestic packaging paper prices continued to rise. Among them, the ex-factory price of corrugated paper increased by 100-200 yuan/ton. As of the end of June, the domestic mainstream ex-factory price of 120g high-wattage was reported at 3500-4000 yuan/ton, a month-on-month increase of 10%-27 %. Throughout the second quarter, the industry's off-season was not weak, and the price rose every month. Calculated at the price of 120g high watts, it rose by nearly 1,000 yuan/ton in a single season, an increase of nearly 30%.

Wrapping paper is paper used for packaging various commodities and materials, and generally has high physical strength and certain water resistance. The rise in paper prices is inseparable from changes in supply and demand. From the perspective of supply, entering December 2016, due to increased environmental protection supervision and economic development, a large number of small and medium-sized paper companies in the north and the middle and lower reaches of the Yangtze River will either suspend business for rectification or shut down directly, making the paper industry gradually concentrated. The reduction in supply due to the closure and cessation of business for rectification has brought rare opportunities for paper companies to increase prices.

In terms of demand, with the improvement of the national economy and the rapid growth of online shopping, downstream paper packaging demand has maintained a steady growth. It is expected that the industry demand growth rate will remain at about 5% in the next few years. At the same time, with the arrival of summer, the demand for downstream beverages and other consumer products for relieving heat has increased significantly. Packaging paper is about to enter the peak season of seasonal demand, demand increases, and the industry's prosperity continues to improve.

The increase in the price of packaging paper products has caused the profits of paper-making companies to rise sharply. In just six months, some paper-making companies have wiped out all the losses of the industry downturn in the past few years. According to the latest data released by the Ministry of Industry and Information Technology, from January to April this year, the total profit of the national paper industry was 19.74 billion yuan, an increase of 84.7% year-on-year, an amazing increase.

The sharp rise in paper prices is reflected in the performance of listed companies. In the first half of 2017, the six listed paper companies of Sun Paper, Jingxing Paper, Zhongshun Jierou, Qifeng New Materials, Anne Stocks, and Kane Co., Ltd. are expected to have the largest year-on-year increase in net profit and the largest change in net profit is 50% and above. . Among them, the largest increase is Kane shares, and it is expected that the net profit in the first half of 2017 will grow from 782.45% to 953.07% year-on-year. And Annie shares expects the year-on-year growth range of net profit in the first half of 2017 to be 542% to 628.76%.