As the upstream material of the paper industry, the price increase of pulp is considered to be the main reason for the sharp rise in paper prices in this round. As a commodity with a cyclical price,

Plastic restrictions, waste paper import bans, and mismatches between market supply and demand are accelerating the rapid growth of costs for paper companies.

Under high prices, large companies in the paper industry chain have circled more chips with economies of scale and financial strength.

The fast-forward button is pressed; both the small paper mills in the middle reaches and the small paper mills in the downstream are facing huge cost pressures and even losing pricing power.

The greater pressure is that under the goals of "carbon peaking" and "carbon neutrality", the transition time left for small paper companies is running out.

 

01. The price of white cardboard doubled in half a year, and small factories were forced to shut down

"From the perspective of the purchase price of the printing plant, the price of white cardboard began to rise slightly in November last year, but the increase was not significant at that time. The increase in January and February this year

The price is very strong, and each price increase starts at 2,000 yuan.

For leading enterprises, they not only have market bargaining power, but also hold more bargaining chips for upstream raw materials. But for those who need to buy spot from the dealer

For small factories, the rise of raw materials will soon affect production and operation, not only price pressure, but also supply quantity.

 

02. Downstream companies dare not easily raise prices on the consumer side

The rise of raw materials in the paper industry is the main reason for this wave of paper prices, which is almost the consensus of the industry. Data show that since 2021, domestic papermaking

Raw material prices continue to rise. As of April 29, 2021, the prices of imported softwood pulp and imported hardwood pulp were RMB 7,120/ton and RMB 5,288/ton respectively.

Compared with the low level in 2020, it will increase by 60% and 49% respectively.

The upstream raw materials continue to rise, and the bargaining power is in the hands of leading paper companies. For mid- and downstream companies, profits are rapidly dissolving, while small companies’

Life is more difficult. This is the dilemma faced by SMEs in the paper industry chain at this stage. They have to bear the pressure of rising costs and cannot smoothly transfer

The price increase is passed on to the consumer terminal. "Living" has become the top priority.

 

03. The price will be stable, but the living space may be compressed

The rising tide of the paper industry has brought considerable profit growth to the large paper companies in the upper and middle reaches, and the small paper companies that originally occupied a relatively small share in the industry

The industry has been hit hard in this rising tide.

Judging from the latest news, the growth of raw materials in the paper industry has begun to slow down. As of May 27, pulp futures fell for the sixth consecutive trading day at 6,020 yuan/ton, which was

The lowest this year; the National Bureau of Statistics even stated that it needs to ensure the supply and prices of bulk commodities. But the Matthew effect of industry reshuffle has begun. This industry logic is

Under the background of "carbon peaking" and "carbon neutrality", it will intensify.