It's peak season! The paper industry raised prices significantly in the second half of the year
2022-10-12
Since the second half of this year, a number of paper companies have issued a letter of price increase, including Zaobohui Paper, Mountain Eagle International, Sun Paper, Nine Dragons Paper and so on.
Behind the repeated price increases of the leading paper enterprises, the entire paper industry began to get rid of the performance dilemma.
The first half of the year: paper prices are difficult to recover
In the first half of this year, affected by the lack of downstream demand and other reasons, the sales of most listed paper companies declined, and some leading paper companies even suffered losses.
Overall, due to the sharp decline in the price of papermaking raw materials such as wood pulp and wood chips, the paper industry had the opportunity to repair profits in the first half of the year compared to the same period last year. However, downstream demand is weak, and the contradiction between supply and demand in the industry is increasingly fierce, making it difficult for paper prices to recover.
The second half of the year: Market demand gradually improved
The national manufacturing purchasing managers' index (PMI) came in at 50.2 percent in September, up 0.5 percentage points from August and back into expansion territory. Where the new orders index was 50.5%, up 0.3 percentage points from August, indicating that the demand for the manufacturing market continued to improve.For example, the price of cardboard paper and corrugated paper have signs of returning to profitability. Turn losses into profits, and then profits rise, the paper packaging industry will come out of the "darkest moment".
From the perspective of the profit development of paper enterprises this year, the overall industry was greatly affected by the external environment in the first half of the year, resulting in the profit of paper enterprises falling short of expectations. Entering the second half of this year, especially in September and October, the price increase momentum of major paper enterprises has intensified, and the price of finished paper has steadily increased, driving the improvement of industry profits
