Paper industry capacity release costs go up
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The growth rate of fixed asset investment completion has declined, but the pressure on capacity release still exists. The growth rate of fixed assets investment in the paper industry was only 8.2% at the end of 2010, down 22 percentage points from the beginning of the year, but the output reached a new high in 2010. With the release of new capacity, the production capacity will still be concentrated in 2011. Different, the order is white cardboard, cultural paper, cardboard paper and coated paper.
Raw material costs remained at high levels, but overall showed an upward trend. According to the latest data on raw material prices, except for the price of kraft pulp, which was slightly adjusted back from the beginning of the year, the prices of other raw materials showed an upward trend. The price of softwood chemical pulp was basically stable compared with the beginning of the year, while the price of hardwood chemical pulp rose by more than 5%. At the same time, the price of waste paper is US waste, the daily waste is up 5%, and the European waste is about 2%. Raw material prices are expected to remain high in 2011.
The cost pushes up the price of paper, and the price trend of the later papers needs to look at the downstream reaction. Due to cost pressures, most paper growers have recently raised their prices. Among them, coated paper companies have raised their prices by 100-200 yuan/ton, double-adhesive papers have adjusted prices by 100 yuan/ton, and white cardboards have also increased by 100-200 tons per ton. Yuan per ton, but due to the different supply and demand pressures of various paper types, the downstream acceptance level is also different, and the price trend in the later stage needs to look at the downstream reaction.
The profitability of dissolving wood pulp is high, and the transactional market is brought in the short term. The main performance contribution is in 2012. Since the end of last year, high cotton prices have led to a surge in the price of its alternative screed viscose staple fiber and raw wood dissolving wood pulp. At present, the net profit of dissolving wood pulp is as high as 4,000-5,000 yuan/ton, which is much higher than the profit of paper-making wood pulp. This will attract a large number of paper enterprises to invest in the project. However, due to the time required for the project to be put into production, it will not contribute much to the 2011 performance. It will be mainly put into production in 2012.

