Since June, the domestic economy has recovered and the overseas economy has restarted. As a counter cyclical and necessary consumer goods attribute, the paper industry has ushered in a significant recovery.
First, the paper products downstream of the paper industry, cultural paper and white cardboard, cancelled ultra-low prices in June; in July, some enterprises have issued price increase letters, even extending the deadline to August. According to the statistics of market participants, since May, the price of corrugated board has been raised for 8 consecutive rounds. Many paper mills have raised the price of waste paper continuously during this period, up to 100 yuan per ton. However, the good time is not long. Recently, as the price of waste paper has dropped significantly, the price reduction letters from paper enterprises have also been pouring in. Among them, Dongguan Jiulong, the leading paper enterprise, has lowered the paper price twice from the late 19th to the noon of the 20th, with a cumulative decline of 250 yuan per ton, which makes the prospect of the paper industry again doubtful.
However, the A-share market seems to be “indifferent” to the sudden slump in waste paper prices at the end of last week. July 20, A-share paper plate performance bright. Data show that as of July 20, the paper index rose 7.55%, ranking the third among the 67 theme industry indexes. Component stocks, Chenming paper, Annie shares, Anhui Shanying trading, sun paper, Xianhe shares, Minfeng special paper, etc.
Waste paper, as an effective environmental protection renewable resource, is the main raw material of paper industry. Industry insiders said that the paper industry has the attributes of counter cyclical and necessary consumer goods, and the improvement of people’s health awareness will boost the demand for household paper, which will benefit the composition of A-share related stocks.
Post time: Jul-22-2020