Analysis of the hottest domestic coated paper mark

2022-08-08
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Analysis of the recent coated paper market in China

the recent rapid changes in the coated paper market price have stunned peers in the industry. Through the investigation of the coated paper market and the exchange with some coated paper professionals and large copper dealers to realize independent or comprehensive functions, the author has some views on the recent coated paper Market:

first, the price of coated paper has fallen from more than 9000 yuan a ton last year to more than 6000 yuan a ton now, and the price has fallen by almost one third. It has fallen in a straight line for more than half a year, which is rare, What is the reason? According to the analysis of relevant insiders, first, the price of pulp fell sharply, from more than 7000 yuan a ton last year to more than 3000 yuan a ton now. Historically, it has almost fallen to the bottom line. Pulp enterprises in some large pulp producing countries in the world have been reducing production, stopping production and reducing inventory, hoping to stabilize pulp prices and make them recover. However, the current situation tells us that the efforts of these enterprises have not reversed the downward trend of the pulp market, and the decline in pulp prices cannot but have a certain impact on the price of coated paper, which will also lead to a decline in paper prices. Last year, the price of coated paper was more than 9000 yuan per ton, and the profit was considerable. Some markets also heard that the demand for coated paper was not decreasing, so coated paper production enterprises increased production one after another in order to win the market and obtain more profits. Even some paper mills that produce other kinds of paper also turned around and launched coated paper production lines, which greatly increased the output of coated paper this year. However, the market demand is not as hot as expected. In order to compete for the market and ensure product sales, the most direct and effective method adopted by all coated paper enterprises is to reduce prices

second, several large coated paper manufacturers in China urgently needed to speed up the return of funds due to the production of new projects, so they sold a lot of inventory. In order to digest the inventory as soon as possible, they had to reduce the price. Faced with the surplus market and weak demand, all dealers strive to ensure their profits. In order to get the lowest price of paper, I have been watching the market and dare not purchase in large quantities, for fear that the price will fall again in a few days. Some large manufacturers mentioned above, seeing that the inventory reduction was too slow, lowered the price again to stimulate dealers to purchase. The dealers, seeing that the market price is so unstable, dare not purchase in large quantities, thus forming a vicious circle of price reduction

Third, China will join the WTO at the end of this year, which will mean that foreign coated paper will enter the Chinese market at a lower price in the future. Some large domestic coated paper manufacturers have to reduce prices in advance and expand market share to prepare for competition with imported paper. This may also be one of the reasons for the recent confusion in the introduction of investors of coated paper projects

IV. some newly launched small domestic coated paper manufacturers regularly clean and replace torque motors and pilot valves. In order to get a share of the market and occupy a place, they have to produce some coated paper with low cost. Therefore, it is particularly necessary to promote plastic granulators that use local advantageous energy for heating in some areas with power shortage and high electricity costs, so as to impact the market at a low price. At present, in some printing markets in China, especially in Wenzhou, Yiwu and other places, printing products are relatively cheap and low-grade, so low-grade and cheap coated paper is widely used. It can be said that domestic low-cost coated paper has a lot of room for survival in the market there. Low price paper accounts for part of the printing market, which also has a certain impact on high-grade paper, thus intensifying the price reduction competition of coated paper

v. recently, the state has issued and implemented some new transportation regulations, which have stricter restrictions on truck overloading, and the fuel price has increased, which have more or less increased the cost of products, but the price of coated paper has only fallen but not increased, making coated paper manufacturers can only sell at breakeven in order to stabilize the original market, and some still sell at a loss, making production and operation extremely difficult

to sum up, according to the author's observation, the current coated paper market is in chaos, and there are a few worries and worries among the manufacturers. It only depends on who can persist to the end. It is unlikely that the market price of coated paper will rise during the year. It seems that all coated paper manufacturers should be prepared for the battle. In this regard, we also hope that the major domestic coated paper manufacturers can unite and work together to stabilize the market price of coated paper

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