Source: China Securities Network
Since December, the price of paper that has been quiet for a long time has begun to move. Recently, the national waste paper has increased in price, and 103 paper mills have raised the purchase price of waste paper by 30-100/ton. Among them, domestic scrap yellow paper prices have continued to rise for some time, and some regions have increased by 100-200/ton.
Analysts believe that the recent rain and snow weather across the country has made road transportation difficult, and paper mills have reduced the amount of waste paper. In addition, after the finished paper inventory of small and medium-sized paper enterprises is de-constructed, the waste paper inventory is relatively low, and there is also a certain reserve demand.
On November 28th, the Solid Waste Management Center of the Ministry of Environmental Protection released the list of the 25th batch of imported waste papers approved in 2018. Only one company in Zhaoqing Kelun Paper was approved to import about 0.44 million tons of waste (Huatai Paper is the original). The quota change port is not included in the new quota. The amount of the batch approval for this batch is the lowest since the second half of 2018.
Everbright Securities said that as of the beginning of December, the Ministry of Environmental Protection approved a total of twenty-five batches of imported waste papers in 2018, with a total volume of 18.1507 million tons. The highest approved batches were Nine Dragons Paper, Lee & Man Paper, and Mountain Eagle. In the paper industry, the total amount of the three companies accounted for 62.7%, and the leading enterprises still have obvious quota advantages.
Looking forward to the market outlook, analysts believe that the momentum of the continuous increase in waste paper prices is not very strong, the current waste paper prices in Zhejiang have begun to pull back. On the one hand, the road transport resumed after the weather improved; on the other hand, the overall demand for finished paper is still weak. After the downstream stocking, the current transaction has slowed down again, which has suppressed the willingness of paper companies to receive goods. At present, the supply of waste paper in China is still relatively abundant, and the demand pressure is still relatively large. As the weather improves, the amount of waste paper in paper enterprises increases, and the recent price may once again enter the downward channel.
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