Paper mills lost to the bleak market in the first half of the year, and paper prices may still turn around in the second half of the year
June 30, 2022
2022 is about to enter the second half, and it also brings uncertainty to the second half, especially for paper prices. So, is it still possible for paper prices to turn around against the wind in the second half of the year? The answer is possible!
Looking back at the first half of the year, the upstream paper mills did not believe that Dongfeng could not return, and the letter of price increase must be sent every month. However, the downstream inventory continued to shrink, causing the upstream inventory to explode, and the downstream shrinkage was faster than the upstream shutdown and production reduction. The strong paper mills finally lost to the cold reality and were pressed into market friction.
Recently, the paper mill issued a price increase letter again:
However, in response to the uproar from the upstream, the downstream customers were extremely calm and could not arouse the desire to purchase at all. Therefore, in the real order transaction, the paper price does not rise but falls.
Looking at the upstream paper industry, there is a lot of rising noise, and it is rising every month. But looking at the downstream customers, everyone only admits the decline. If the price falls, you can still buy a little, and once the price rises, the order will be frozen. In short, in the first half of this year, the base paper manufacturers have grown lonely.
"I can't remember how many times I received a letter of price increase from paper mills in the first half of the year." Mr. Shi, head of a large paper packaging company in Zibo, Shandong, told the "Securities Daily" reporter: "Since this year, raw materials and other costs have been high, and paper There is a last resort for paper companies, but the terminal demand is weak and the process of recovery is very difficult. Our packaging companies are also extremely difficult. After all, many rounds of paper companies have not been able to effectively land in the end."
