Paper industry: 2018 several happy couples

Paper industry: 2018 several happy couples

Source: Packaging Zone

If the inventory of the paper market in 2018 is carried out, the biggest winners will still be paper giants (ie, first-class factories) that hold the approval of imported waste papers, such as Xiaolong, Shanying and Lee & Man, followed by Yutong and Hexing. Jinjia and Meiyingsen have benefited from the leading packaging and printing enterprises (ie, secondary factories) whose paper prices have fallen. The third-grade carton factories are also beneficiaries in general. But the original paper distributors, corrugated paperboard factories and small and medium-sized paper companies at the margins are losing money.

Paper giant is still the biggest winner

On January 15, 2018, Shanying Paper released a 2018 performance pre-announcement announcement. The company expects to achieve a net profit attributable to shareholders of listed companies of approximately 3.38 billion in 2018, an increase of approximately 68% year-on-year.

On October 23, 2018, Nine Dragons Paper announced its annual report for the 2018 fiscal year. From the data point of view, this is an amazing annual report. The sales revenue reached 57.282 billion yuan, a year-on-year increase of 34.8%; the net profit reached an astonishing 7.861 billion yuan, a surge of 78.3%.

On August 8, 2018, Lee & Man Paper announced its interim results. The company's 2018 interim revenue was 16.669 billion ports, an increase of 43% over the same period last year. The net profit attributable to owners of the company was 2.88 billion ports, an increase from the same period last year. 35%.

The data of the three leading papers is undoubtedly very beautiful, which is mainly due to the monopoly of the three companies for cheap waste. If the external waste cost and the original paper price in 2018 are comprehensively evaluated, the packaging paper industry still has a large profit margin.

It can be seen that in 2018, the biggest winner of the paper packaging industry chain is still the paper giant.

Secondary carton factory enjoys price reduction bonus

In 2018, the performance of packaging and printing faucets such as Yutong, Hexing and Meiyingsen was insufficient, which was more than enough. In general, because the decline of the original paper in the whole year is higher than the preferential rate offered by the secondary packaging and printing enterprises to the customers, the profitability of the secondary packaging and printing enterprises is relatively stable in the case of the overall shrinkage of orders. The company has even improved significantly.

Throughout the year of 2018, except for a small increase in early May, the other months of the rise have not been implemented. The price of paper has fallen. The price trend of cardboard paper can be seen, and it has fallen all the way to a high of 6188/ton at the end of October 2017. It has now fallen to 4,402/ton, a drop of nearly 30%. According to the industry leader Yutong Group, as of December 18, 18, the price of white cardboard was 5127/ton, down 20.45% from the beginning of the year.

But basically it can be concluded that 2018 may be the best year for the second-tier plant in the next decade.

Abandoned Corrugated Card Factory

In 2018, the most lost thing is the corrugated board industry. The self-rescue price hike has been ridiculed by the downstream third-tier factories. It can only rely on price cuts or even loss-making operations to obtain poor orders.

In 2017, the paper mills ate meat, and the cake factory’s soup did not repeat itself. The false prosperity has instead dig a large pit for the cardboard industry in the middle of the sandwich layer. It is mistaken that the cardboard enterprises with great situation have purchased a large number of new tile equipment, and the enterprise has entered a passive situation, which has led to the paperboard being in a state of falling.

Even worse, due to the huge price difference between large-scale paper mills using imported waste and domestic waste, on the one hand, suppressing small and medium-sized papermaking enterprises, on the other hand, harvesting foreign monopoly dividends, resulting in overall high price of paper prices, and serious loss of blood in paperboard factories.

According to a senior paper industry person in the Pearl River Delta, if the equipment investment is included, the Pearl River Delta cardboard industry will not only lose the profits of the previous year in 2018, but even take the old ones. The cardboard industry once again ushered in the historical cycle of “good two years and five years”.

Paper traders generally suffer losses

In 2018, some paper traders who saw more paper prices suffered huge losses.

Chen Shousun, head of Xiamen Jianfa Paper, told CCTV reporters that due to the decrease in the volume of goods obtained downstream, the inventory turnover was extended from 30 days to a maximum of 45 days. For a single inventory, there is at least a 10% to 20% drop in price.

For some imported paper traders who get goods from overseas, the market is not optimistic. Due to the high logistics costs and customs clearance costs, coupled with the prolonged cycle around the base paper, paper mills such as Xiaolong used sudden price cuts to block imported paper, which led to a worsening of imported paper.

In addition, if you calculate relatively high financing costs, many paper traders may be more serious than imagined.

Unpreserved three-level carton factory

As the most vulnerable part of the whole industry chain, the three-level carton factory is very fortunate to have mixed up in the face of low-cost competition in the first and second-tier factories. All this should be attributed to the price reduction of the paper mill and the good performance of the service attributes.

However, due to the impact of factory rents, social security tightening and environmental safety supervision, the three-tier carton industry is in a precarious position. From the current point of view, in the traditional packaging market, the carton factory is still self-styled, and the living space in 2019 will be even more pressing. Therefore, how to make use of the manufacturing industry to the consumer-driven intelligent manufacturing + Internet transformation and upgrade opportunities to achieve a gorgeous turn, is a problem that many business owners are thinking.

At the beginning of 2019, the paper mills that did not stop aiming again set off the price hikes. As of January 11, 2019, 180 paper mills across the country raised the purchase price of waste paper by as much as 200/ton. As of January 14, 76 paper mills have raised the price of raw paper, up by 200/ton. In just two days, seven paperboard mills went up, and the price of cardboard was up by 5%. On the other side, the packaging user is launching a big price cut.

In 2019, how to balance the interests of the upstream and downstream of the paper packaging industry chain, packaging and printing companies how to grasp the overall situation and direction, or become the winner of the determination of corporate fate. As a business owner who maintains the livelihood of some employees, there is really no loss.

Editor in charge: Ge Hongyan

This article is posted on this website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description.

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