The pulp and paper industry faces challenges and deadlock in the first quarter of 2023
In the first quarter of this year, the paper industry continued to be under pressure since 2022, especially when the terminal demand has not been significantly improved. Downtime for maintenance and paper pre roll knock box prices continue to fall.
The performance of the 23 listed companies in the domestic A-share papermaking sector in the first quarter was generally dismal, and different from the overall situation of the paper pre roll bump box making sector in 2022 that “increased revenue without increasing profits”. There are not a few companies with double downs.
According to data from Oriental Fortune Choice, among the 23 companies, 15 companies showed a decline in operating income in the first quarter of this year compared with the same period last year; 7 companies experienced performance losses.
However, since the beginning of this year, the raw material supply side, especially for the pulp and paper how much is a box of cigarettes industry, has undergone significant changes compared with the same period in 2022. Zhuo Chuang Information analyst Chang Junting told the “Securities Daily” reporter that in 2022, due to multiple factors such as continuous supply-side news and pulp and paper linkages, the price of wood pulp will rise and remain high, resulting in a decline in the profitability of paper companies. However, since 2023, pulp prices have declined rapidly. “It is expected that the price decline of wood pulp may deepen in May this year.” Chang Junting said.cigarette box
In this context, the stalemate game between the upstream and downstream of the industry is also continuing and intensifying. Zhuo Chuang Information analyst Zhang Yan told the “Securities Daily” reporter: “The double offset paper industry has experienced a wide decline in pulp prices and the support of double offset paper due to rigid demand. The industry’s profits have recovered significantly. Therefore, paper box of cigarettes price companies have a good price. With the mentality of continuing to restore profitability, this is also the main mentality support for this round of price increases by leading paper companies.”
But on the other hand, the pulp market is weak, and the price “diving” is obvious, which leads to limited market support for paper prices on the one hand, and on the other hand, the enthusiasm of downstream players to stock up has also weakened. “Many downstream operators of cultural paper are holding back and want to wait for the price to drop before stocking up.” Zhang Yan said.
For this round of price increases by paper companies, the industry generally believes that the possibility of its real “landing” is relatively small, and it is mainly a game between upstream and downstream. According to the predictions of many institutions, this state of market stalemate game will still be the main theme in the short term.
Post time: May-15-2023
