Wednesday, August 18, 2010

Paper Industry Reboung Faster

Recently, we conducted a major telephone survey of listed companies, with the front-line sales staff on the current market conditions sufficiently exchanges. Summary information on all research, our general feeling is: The current industry rebound faster than we imagine.

Rising paper prices accelerated, copper, white card and white Cardboard Among the biggest gainers in June accelerated since the price of paper rose, copper, white cards and paperboard prices 800-1,000 yuan / ton, or more than 15%. Current Coated Paper Price Report 6200-6300 yuan / ton, ex-factory price of about 6,000 yuan / ton; white cardboard Report 6400 yuan / ton. Producer price is about 6200 yuan / ton; White Board Report 4200-4300 yuan / ton, ex-factory price of about 4,000 yuan / ton.

Prices remaining relatively stable types of paper. Offset current price report 6500-6600 yuan / ton, prices 6200-6300 yuan, up 200-300 yuan / ton; Newsprint Price Report 4400-4500 yuan / ton, compared to 300-400 dollars up front, or 10%; Cardboard Report 3400-3600 Yuan /. Tons, up 100-200 dollars, was up.

Years look good copper, white card and white board reasons: lower demand, profitability continued to improve. Coated paper consumption increase was affected by real estate, Car Driven recovery, etc.; and enter the third quarter, some of the traditional Mid-Autumn Festival after the arrival of white card and white board into the drive consumption season, it is learned, Tobacco Factory 7 monthly shipments doubled.

Performance: significant reduction in mill inventories, tight supply. To Sun Paper, for example, the normal inventory level is generally from 7 days to two weeks, and the current inventory, only 3 days, close to zero inventory, order adequate supply tight. As the production capacity has been fully released, the state could expect this shortage to continue until the end of the late copper, the price of white card and white board there is a big upside.

Cost: The main raw materials Wood pulp Growth has slowed down. High-grade coated white board with copper and wood pulp as raw material, and because of weak external demand, the recent price growth has slowed down the global pulp, conifer pulp price or even a slight callback. In this case, the substantial increase in paper prices will undoubtedly improve the industry profitability. Sun Paper

most benefit, continue to be key recommendation copper, the largest proportion of white card and white board. As a copperplate, white card and white paperboard production experts, Sun Paper capacity of three types of paper together accounted for nearly 80% of total capacity, will undoubtedly become the biggest beneficiary.

Substantial reserves of low raw materials to further expand margins. On the other hand, low in the second quarter of sufficient reserves of raw materials, basic protection in October can be required prior to production, making its current raw material cost is lower than the industry average. In this case, margins will be further expanded.

The second half of the performance increased significantly. From the research point of view, our preliminary earnings forecast is conservative, mainly reflected in the second half of copper, white card and white board is expected to lower the price.


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