Packaging paper supply reduces market stability

From the market performance, this week's light industry trend underperformed the broader market. This week, the Shenwan Light Industry Index fell 2.87%, while the Shanghai and Shenzhen 300 Index fell 0.92% over the same period, surpassing 1.95 percentage points. The increase of consumer key companies: Shanghai Green (0.72%), Hexing Packaging (-5.31%), Rebecca (-5.70%), Sophia (-7.10%), Yihua Wood (-5.89%), China Shun Jierou (-2.12%), Sun Paper (-7.74%), Chenming Paper (-3.87%).

In the raw material market: Peel prices in the international market continued to rise this week, and the domestic market remained stable. Wood pulp stocks continued to push up the pulp price in the historical average. The new global producers' wood pulp inventory data showed that the inventory days in December were flat in November, down 2 days from the same period in 2011. As of January 22, the average price of softwood pulp in Europe was 816.34 US dollars / ton, up 0.36% from last week; the average price of broadleaf pulp in Europe was 781.37 US dollars / ton, up 0.24% from last week. Waste paper prices continued to rise this week, but at the end of the year, the paper mills were shut down for maintenance, and the upward momentum weakened.

In the cultural paper market: the price of coated paper stopped rising this week, and the price of double-coated paper remained stable. As the Spring Festival approached, the downstream demand orders basically ended. This week, the coated papers have risen since the beginning of the month; the double-adhesive paper market is still light, the dealers have high inventory pressure and the downstream demand is sluggish.

In the packaging paper market: the market turnover was stable this week, and the price did not change much. With the approaching of the Spring Festival, the market supply and demand is stable, and the prices of whiteboard paper and white cardboard have not changed much. On the one hand, due to the weakening of downstream demand at the end of the year, on the other hand, manufacturers are facing holiday arrangements, and many downtime maintenance plans are in place, and market supply is also reduced.

In January, listed companies entered the pre-disclosure period of annual report performance, paying close attention to companies with higher-than-expected results and high expectations of transfer, and guard against performance mines. On the company side, we recommend Yihua Wood, which has outstanding brand building, stable export growth and perfect domestic sales channels; Sophia, a leading wardrobe manufacturer with good growth and defense capabilities, with leading national production layout; The vacuum aluminum-plated paper industry leader Shanghai Green New; and the downstream customers with broad resources, market layout, and the national supply capacity of the paper packaging industry leader Hexing packaging.

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