International pulp and paper prices fell slightly worrying corporate outlook

And domestic Papermaking Corporate life and deathof goods Wrapper Box, which for many industries,
of the international pulp price washed record highsthe price of paper can be said that "indeed affect
earlier this year, the last two months, began tothe whole body."
decline slightly. Although most analysts believe that,Although some enterprises have a pulp production
from now until early next year, the international pulpline, but no one paper can be completely
price correction will slow slightly, but high costs andself-sufficient enterprise. Therefore, when pulp prices,
the price of transmission is not entirely clear, in thethe direct damage to the company, including China
second half will continue to erode corporate profits,and Thailand share, Chenming Paper, Yueyang Paper,
but also will large negative impact on downstreamJinggu forestry, indirect damage, including publication
industries.of the media.
International Pulp The price of a "bull" the skyIn addition, imports Paper China's paper industry is
Since 2006, the international pulp prices startedone of the major raw materials, in particular paper,
climbing. Among these are demand-driven pricenewsprint and other kinds of waste paper over
increases, but also by the weak dollar, strongcontent even to Qi Cheng. With the pulse of the
commodity prices in general trend of the coerced.international pulp price fluctuations in basic agreement,
Guotai Junanthe information provided, the 2006international paper prices also rose gradually from the
International Wood pulp Basically at the higher priceend of 2006, in the first half of this year after
being. As of the end of January 2007, both pulp orachieving high point slightly down.
hardwood pulp needle industry, offer a breakthrough7 months, the international pulp prices fell slightly.
last year have been high points: pulp by the needleData show that in August the international pulp spot
industry in early 2006, the 612 U.S. dollars / ton, up toprices decreased by 15% -20%.
the end of January 2007 of 750 U.S. dollars / ton, upThe international pulp prices fell and did not bring
22.5 %; hardwood pulp growth has slowed downgood news to the paper-making enterprises. Types
recently, but still in early 2006, 600 U.S. dollars / ton,of bulk commodities trade as an international one, the
up to the early 2007's 670 U.S. dollars / ton, upinternational pulp price movements involve the
11.70%.interests of a number of investment institutions.
In June this year, the international pulp prices brokeDeutsche Bank report published at the end of August
through 900 U.S. dollars mark, bleached softwoodthat the international pulp price decreases than most
kraft pulp prices in North America reached 904 U.S.analysts expected, or more than usual level, while
dollars / ton, then the price dropped slightly, the priceproducer inventories increased last year compared
in September dropped to 858 U.S. dollars of thewith about 24%, the pressure may be passed on
species / ton.Paper. Subsequently, Deutsche Bank's rating on
Chinese invented papermaking, but the modernInternational Paper and Domtar cut to hold from buy
paper-making material was once Straw pulpon the grounds that the price decline in pulp paper
Monopoly. Although low-cost manufacture of straw,company earnings increase the likelihood of a drag.
raw materials easy to solve, but its impact on theThis means that although the cost of imported pulp
environment is very large, in the last five years,reduced expenditures, but because of the global
carried out by shutting down small paper one aftereconomic slowdown led to pulp prices fall Paper
another level, transforming the industry to upgradeproducts Concomitant weakening of demand,
production line movement, straw pulp methodthereby affecting the paper's pricing power, their
basically been eliminated, wood pulp as the main rawprofit margins continue to be eroded.
material.Woeful second half of the paper industry Although
But China is a lack of forest cover countries, thethe international pulp pricethe first half of this year
domestic paper industry depends on imported rawreached its highest point, but the paper companies to
material for paper pulp. As the domestic pulp andproduce a mid-year results are the best "answer
paper making enterprises occupy the cost ofsheet": Yueyang Paper in the first half net profit
between 3-5 percent, pulp price fluctuations directlygrowth of 164.38 percent, Fujian Nanping Paper net
affect the paper industry profits and losses.profit growth of 700%, Bo paper, Minfengtezhi,
More importantly, paper products is a high frequencyChenming Paper net profit growth of 50% -100%
of use of industrial materials such as newspapers,are in between. Reflects the contradiction between
publishers need to print culture, paper, various typesthe paper industry survive embarrassing situation.