On the evening of June 9th, CCTV News reported that according to the latest statistical data released by the China Light Industry Federation, from January to April this year, China’s light industry economy continued to rebound and provide important support for the stable development of the industrial economy, with the added value growth rate of the paper industry exceeding 10%.
The Securities Daily reporter learned that many companies and analysts hold an optimistic attitude towards the paper industry in the second half of the year. The demand for domestic appliances, home furnishings, and e-commerce is increasing, and the international consumer market is recovering. The demand for paper products can be seen as high on the front line.
Optimistic expectations for the second quarter
According to statistics from the China Light Industry Federation, from January to April this year, China’s light industry achieved a revenue of nearly 7 trillion yuan, a year-on-year increase of 2.6%. The added value of light industry above designated size increased by 5.9% year-on-year, and the export value of the entire light industry increased by 3.5% year-on-year. Among them, the value-added growth rate of manufacturing industries such as papermaking, plastic products, and household appliances exceeds 10%.
Downstream demand gradually rebounds
While enterprises actively adjust their product structure and promote technological innovation, industry insiders also hold an optimistic attitude towards the domestic paper industry’s market in the second half of the year.
Yi Lankai expressed an optimistic attitude towards the trend of the paper market: “The demand for overseas paper products is recovering, and consumption in Europe, North America, the Middle East and other regions is rebounding. Businesses are actively replenishing their inventory, especially in the area of household paper, which has increased demand. In addition, recent geopolitical frictions have intensified, and the shipping cycle has been extended, further enhancing the enthusiasm of downstream overseas businesses to replenish inventory. For domestic paper enterprises with export business, it is currently the peak sales season.”
When analyzing the situation of segmented markets, Jiang Wenqiang, an analyst at Guosheng Securities Light Industry, said, “In the paper industry, several segmented industries have already released positive signals. In particular, the demand for packaging paper, corrugated paper, paper-based films, and other products used for e-commerce logistics and overseas exports is on the rise. The reason for this is that downstream industries such as domestic appliances, home furnishings, express delivery, and retail are experiencing a rebound in demand. At the same time, domestic enterprises are setting up branches or offices overseas to welcome overseas demand expansion, which in turn generates a positive driving effect.”
In the view of Zhu Sixiang, a researcher at Galaxy Futures, “Recently, multiple paper mills above designated size have released price increase plans, with price increases ranging from 20 yuan/ton to 70 yuan/ton, which will drive bullish sentiment in the market. It is expected that starting from July, the domestic paper market will gradually shift from the off-season to the peak season, and terminal demand may turn from weak to strong. Looking at the whole year, the domestic paper market will show a trend of weakness first and then strength.”
Post time: Jun-14-2024