Source: Huayin Carton Recently, CCTV Financial Channel once again focused on the paper and carton industry, and in-depth investigation of the status quo of the industry. According to a number of cardboard carton factories in Guangdong, they have to work overtime until midnight before the Spring Festival last year, but this year the industry's production and sales have dropped, and some companies have been forced to let workers go home early for the New Year. Downstream consumer demand weakened, paper products production and sales fell In a paper mill in Dongguan, Guangdong, Anlian is carrying out the operation of the paperboard shop. The factory mainly produces cardboard, paper trays and cartons. Allian told reporters that in 2017, when the paper industry boomed, they Every day before the Spring Festival, I have to work overtime until midnight. Since the end of 2018, due to the reduction of downstream orders, everyone is obviously not so busy, and some workers have come home early for the New Year. A paper mill workshop worker An Lianquan: Last year, we said that the business is better, that is, our daily workload, a person can take more than 400 cubic meters. In this year, it means that there are only more than 300 cubic meters, and the business is relatively light. Some people are also prepared to go home for the Spring Festival, yes, we will let him go. Zhang Xinxiong, Chairman of Dongguan Qingpu Paper Co., Ltd., Guangdong Province: The overall order was down 20% year-on-year in the second half of the year. The overall price cuts are due to the gradual reduction of overall downstream orders, which also caused overcapacity in the upstream and gradually reduced prices. The reduction in orders will definitely affect our side, and we also feel that the operating rate of employees is not so high. In another factory in Dongguan that produces corrugated cardboard and cartons, the person in charge also felt the downturn in the industry. In 2017, the paper mill's annual sales increased by 18% year-on-year. In 2018, the order dropped significantly, and the factory started. The rate is also obviously insufficient, they expect overall sales to fall by 10%-20%. Huang Shengxiong, Chairman of Guangdong Huangshi Jinhui Paper Packaging Co., Ltd.: The upstream decline is also equivalent for us. But on the contrary, because of the decline in raw materials, we probably have one of the most important controls in stock. If the control of our inventory is not good, it will bring a negative profit, because the entire packaging industry itself is now transparent to a way of obtaining information. Also feel the pressure of inventory, this company engaged in paper trade, the person in charge Chen Shousun said that from the order of the printing factory this year, the stability of the customer has deteriorated, and the monthly sales volume is also compared with that of previous years. Reduced, as an intermediate trader, they have to face the risk of falling prices and the decline in profit margins brought by inventory. Chen Shousun, manager of Xiamen Jianfa Paper Co., Ltd.: For example, what we normally do is to say that the inventory turnover is 30 days, and this year it will become at least 45 days or 35 days. Some paper types may be more long. Some of this inventories have caused our risk of falling prices, which is entirely borne by our traders, resulting in a lower profit margin this year. That is to say, the inventory alone is at least 10% to 20% of the price loss. The data shows that the overall price of paper products in the country has shown a downward trend in 2018. Take the cardboard paper with a large price drop as an example. The highest price point appeared in the first week of June last year: 5640/ton, and the lowest point appeared in November. In the second week, it is 4393/ton. In addition, according to the statistics of China Paper Association, the total output of the paper industry in 2018 is about 103 million tons, down 7.5% year-on-year. The apparent consumption of the whole industry is 103.8 million tons, down 4.7% year-on-year. The total pulp production was about 71 million tons, down 11% year-on-year. The total pulp consumption was about 93 million tons, down 7.5% year-on-year. Analysts said that the main reason for the decline in paper prices in the second half of the year was the weakening of demand in the second half of the year. The second half of the year was the peak season for traditional packaging paper demand, but this year due to the decrease in export orders, the Mid-Autumn Festival National Day double 11 and other traditional peak seasons. The actual shipment is not ideal. Under the demand of bad, the cardboard paper is transformed into the buyer's market, and the paper price is mainly slipped. Different pressures under the control of cost differential management, the paper industry differentiation In addition to the slowdown in macroeconomic growth, the paper industry is still facing many development difficulties, such as the depreciation of the renminbi and the rising cost of wood pulp imports. Then, in the context of the deterioration of the operating environment of the industry, how do papermaking enterprises spend the harsh winter and seek new breakthroughs? According to the public data of the China Paper Association, in the first three quarters of 2018, the main business income of paper and paper products enterprises increased by 10% year-on-year, and the profit increased by 1.5% year-on-year. The high price of wood pulp and the rising production cost led to the “increasing income of the papermaking enterprisesâ€. Awkward situation. In order to cope with the downturn in the industry, Zhang Xinxiong, who has been engaged in the production of cardboard boxes for more than 20 years, began to upgrade equipment and build intelligent logistics in the factory in the second half of 2018, thereby reducing consumption and increasing efficiency. Zhang Xinxiong, Chairman of Dongguan Qingpu Paper Co., Ltd., Guangdong Province: With this upgrade, the production capacity can be increased by 30%, personnel can save at least 30%, and the overall energy consumption can be reduced by 20%. The transformation has now begun, and we foresee that it will be put into production in June 2019. In Zhuhai, Guangdong, Ren Xiaoping also felt the cold winter of the industry, but fortunately, the company has not much layout in the affected social paper field, and a larger share is concentrated in the production of food cards. With the increase in customer demand, their main products, including fast food and French fries burgers, not only increased their output in 2018, but also raised their prices slightly. Ren Xiaoping, general manager of China Paper Zhuhai Hongta Renheng Paper Packaging Co., Ltd.: My price has improved compared with the first half of the year. This is one aspect. For example, the summer vacation, just what is in my food field, just a heavy volume, and the Spring Festival, this is just a heavy volume in my food field, so my income for half a year may be slightly higher than the above. However, Ren Xiaoping also felt the pressure from downstream customers. The head of the food paper company also hopes that Ren Xiaoping can lower the supply price like other suppliers. After some discussion, the two sides decided to jointly study the production of harmless paper cups and improve the competitiveness of products in the market. Wang Xianfang, executive deputy general manager of Fujian Nanwang Environmental Protection Technology Co., Ltd.: Before it was 30% of our category, we hope to increase it to 60% or even 80% this year. Overall, we hope it can have 2%. The price of the three paper mills is falling, this is our request; on the other hand, we can increase through the cooperation between our two parties, let us add a category with a production value of more than 80 million yuan next year, no paper coated paper. In the middle and lower reaches of the paper industry, in addition to improving product competitiveness, efficiency and consumption reduction, some companies are also targeting overseas markets, or controlling raw material costs from the source, or opening up more space for product sales. Chen Shousun, manager of Xiamen Jianfa Paper Co., Ltd.: We are all from North America, Russia (imported raw paper), we are also in Southeast Asia, which means that we have set up branches and offices in Thailand and Malaysia. There we are at the end of 2017. Huang Shengxiong, Chairman of Guangdong Huangshi Jinhui Paper Packaging Co., Ltd.: A message from customers, the export volume of next year will be relatively more than 20% more than this year. Our exports are mainly mainly in Southeast Asia, because our products are packaged with our brand customers, and many of their manufacturers are now moving to Southeast Asia. According to the statistics of China Paper Network, the concentration of paper industry has increased from 28.7% in 2011 to 39.95% in 2017. The concentration of industry has increased year by year. The number of enterprises above designated size in the first half of 2018 has decreased from 6,681 at the end of 2017 to 6,650 homes, the concentration is further enhanced. Zhao Wei, Chairman of China Paper Association: In the past few years, due to the increase of our ecological civilization construction, some backward equipment and some backward production lines in the past are also under the increase. There may be some exits. There are also some shut down. Well then there may be some high quality products that may be vacated by some of the advanced capacity and advanced. The papermaking sector index underperformed the market in 2018, and 2019 still needs to pay attention to inventory risks. The data show that since 2018, the paper index has fluctuated with the decline of the broader market. In the first half of the year, the paper index fell by 17.44%. In the same period, the Shanghai Composite Index fell by 13.90%, and the performance was still firm; from the second half of 2018 to January 3, 2019. On the day, the Shanghai Composite Index fell 13.45%, the paper index fell 26.36%, and the Shanghai Composite Index was 12.91 percentage points lower. Among the 22 A-share listed companies in the paper industry, 6 companies reported their 2018 business data in the third quarter, including Kane, Jingxing Paper and Qifeng New Materials, and Anne’s shares turned losses. , Sun Paper, Zhongshun Jierou 2 profit. According to industry insiders, with the increase in industry concentration, some high-quality companies have bucked the trend in the market competition and improved their bargaining power. In addition to paying attention to the leading paper companies that have already been valued, investors may also wish to deploy this wave of economy. Some companies that have survived the market and expanded their market share after the cycle has passed, but overall, in the first half of 2019, the entire paper industry will face the problem of destocking. Analysts said that the high level of inventory in the customer is now a relatively large pressure, so we feel that the short-term opportunities you may see in the industry are not particularly large, the expected overall performance of the single quarter including the first half of 2019 is basically Go down. After the mid-term report in the first half of 2019, after the whole industry experienced a small peak season, the terminal's inventory was basically de-converted. The investment opportunities of the whole industry may be accompanied by the wave of paper prices to bring the next wave, and then it is recommended that its capital expenditure and business reputation are better, and may still win in the subsequent industry competition. This article is posted on the website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description. Article source address: http:// Cleaning Paste,Norwex Cleaning Paste,Norwex Cleaning Paste Grout,Multi Purpose Cleaning Paste Shandong Tianzige International Trade Co., Ltd , https://www.sdbabydiapers.com