Chinese paper industry boom of the downlink - paper, Paper - Paper Industry - China Detergent Chemic - Business

China Papermaking Industry faces rising inventories sluggish sales and profit dilution of the multiple crises the overall situation of supply exceeding demand will result in paper prices the industry often changes along with the economy down According to China Securities Journal reported on November 17 2008 in the first half the paper industry for 10 years harvesting the best crop the industry average profit growth of 60 a number of leading business growth of 100 but only After 3 months the paper industry both in domestic and external under pincer attack suffered inventories sluggish sales and profit dilution of multiple crises Analysts believe that the future of the paper industry will further expand the gap between supply and demand the overall situation of supply exceeding demand will result in paper prices the industry often changes along with the economy down Data show that 08 years ago in September the paper products stocks 378 million tons up 32 year on year increas e of more than 07 increased by 24 sales rate of 97 27 percent year on year in 2007 down 1 1 Paper Industry Association according to Zhao Wei 39 s expected 2008 full year reached 39 4 billion yuan accounts receivable an increase of 2 79 higher than the same period in 2007 Inventory increase was due primarily internal and external subject to both slow down The economic crisis traditional advertising to directly reduce the overseas paper and other large newspapers have reduced version by page At the same time domestic newspapers have made similar decisions which directly affects the type of paper books such as Newsprint Coated Paper Coated Paper Requirements to such papers as the main theme of China and Thailand share products Chenming Paper Yueyang Paper and other sales decreased In addition the sharp drop in exports of Chinese enterprises a direct result of packing paper such as white Cardboard Carton Cardboard etc reduced demand Nine Dragons Paper Li Wen Paper Sun Paper and other performance significantly dropped Is worth noting that quot post Olympic effect quot in supply and demand to play a negative role During the Olympics press reports and to prepare for the Olympics a lot of hoarding Paper Reserves which leads to the second quarter the actual demand is greater than the actual sales and in September the paper did not increase in unit demand the actual sales volume is less than demand Previously investors concerned about the rapidly rising costs eroded profits of the paper industry but now even though the cost has dropped slightly but the paper companies do not happy On the one hand out of concern about future price increases most companies one after another in the first half of the accumulation Wood pulp And paper corporate purchase costs of raw materials is far higher than the current price level and more importantly on the other hand decrease in demand the paper hard to sell exports leading companies into quot External and internal quot level CITIC Securities researcher Xu Jun that third quarter results of listed companies corporate profits down on paper but the first two quarters increased significantly over the previous year Reversal of the reason is because of sluggish sales and reduced sales Inventory backlog the situation of shrinking demand the paper industry demand gap appears inevitable outcome but certainly followed a new round of price cuts Zhao Wei expects full year 2008 production of 8 000 tons of paper and paperboard products the annual consumption of less than 8 000 tons of paper industry demand gap appears a foregone conclusion Next two months domestic demand affected by the economic situation of many uncertain factors so the gap is much being not sure CITIC Securities researcher Xu Jun that paper prices are mainly decided by supply and demand paper often changes along with changes in the economy Because changes in supply and demand paper prices will gradually coming down China and Thailand s hare for sales in South China Mr Zhang said China and Thailand is now the price of newsprint factory about 5 800 yuan ton while in August 2008 at 6 300 yuan ton Another data show that from January to August 2008 paper production increased by 11 67 higher than in 2007 fell 3 26 percentage point increase over the same period

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