The recent rapid change in the price of coated paper market has attracted the attention of industry peers. Through the investigation of the coated paper market and the exchanges with some coated paper professionals and large coated paper dealers, the author discusses the recent market situation of coated paper:
First, the coated paper from the price of more than 9,000 yuan a year last year to 6,000 yuan per ton now, the price fell by almost one-third, a straight decline in the past six months or so, it is rare, why is the reason What? According to the analysis of relevant persons in the industry, the first is the plunging price of pulp, which dropped from 7,000 yuan a ton to 3,000 yuan a ton today, which is almost the bottom line from the historical perspective. The pulping companies in some major pulp producing countries in the world have already reduced their production and stopped production, reduced their inventory, and hope to stabilize the pulp price so that they can pick up. However, the current situation tells us that the efforts of these companies did not reverse the downward trend in the pulp market. The decline in pulp prices cannot but affect the price of coated paper. The price of paper will also decline. Last year, the price of coated paper was more than 9,000 yuan and the profit was considerable. Some markets also reported that the demand for coated paper has not diminished, so that coated paper manufacturers have increased production to win more profits in the market, and even some paper mills producing other kinds of paper have turned their heads into the production line of copperplate paper. Coated paper production increased significantly. However, the market demand was not as popular as expected. The most direct and effective way for all coated paper companies to fight for the market and ensure product sales is to cut prices.
Second, several large-scale coated paper manufacturers in China, due to the new project put into production, urgently need to speed up the return of funds, so a large number of stocks sold, in order to digest the inventory as soon as possible, it would have to cut prices. The dealers faced the excess market and weak demand and tried their best to ensure their profitability. In order to get the lowest price paper, we have an intuitive market and do not dare to purchase a lot of goods, for fear that prices will fall again after a few days. Some of the above large manufacturers, see inventory reduction is too slow, and again reduce the price to stimulate dealers to purchase. The dealers saw that the market price was so unstable that they did not dare to purchase in large quantities, thus forming a vicious cycle of price cuts.
3. China will soon join the WTO at the end of this year. This will mean that foreign coated paper will enter the Chinese market at a lower price. Some large-scale coated paper producers in China have only to reduce prices in advance, increase market share, and prepare for competition with imported paper. This may also be one of the reasons for the recent confusion in the coated paper market.
Fourth, some newly-made small domestic coated paper manufacturers, in order to take a spoonful in the market, took a seat, had to produce some low-grade copperplate paper, and hit the market at a low price. At present, certain printing markets in China, especially in Wenzhou and Yiwu, etc., are cheaper and have lower grades. Therefore, large quantities of low-grade and cheap coated paper are used, and it can be said that low-cost coated paper made in China is a space for survival in the market there. Great. Low-priced paper accounts for a portion of the printing market, and it also has a certain impact on high-grade paper, which intensifies the price reduction competition of coated paper.
V. The recent introduction of some new transportation regulations by the State, more stringent restrictions on overloading trucks, and rising fuel prices all increase the cost of products more or less, while the price of coated paper has only fallen. Not rising, so that the production of coated paper in order to stabilize the original market can only maintain sales, and some are still at a loss of sales, production and operation is extremely difficult.
In summary, according to the author's observation, the current coated paper market is already in a state of chaos. The production plant is a matter of concern and a few families. It only depends on who can stick to the end. The possibility of a rebound in coated paper market prices during the year is already very small. It seems that all coated paper manufacturers are prepared to fight. In this regard, it is also hoped that all major coated paper manufacturers in China can unite and work together to stabilize the coated paper market price.
Analysis of the recent domestic coated paper market
December 21 09:08:18, 2023
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