Nearly 30% of paper mills may close down in 2020

Nearly 30% of paper mills may close down in 2020

The coronavirus is still raging around the world. Paper is the raw material of the paper packaging industry. The price of paper affects the price of packaging products. How is the situation of paper mills this year?
After the two sessions, there will be only seven months left in 2020. With the masks removed, movie theaters have all opened. However, nearly 30% of the paper mills in the paper industry have not yet started. For them, 2020 seems destined to be a lost year.
Since March, the relevant channels have conducted a survey on the inventory and acceptance of packaging stations across the country through wechat observation questionnaire. The results show that affected by the epidemic, the supply of waste paper in the sea has declined significantly, and the acceptance of packaging stations is declining. In addition, the observation data on the annual start-up of paper mill in packing station is particularly noteworthy. The editor sorted out the previous observation data as follows:
In the last ten days of March, 59% of the work was started completely, 20% of the work was stopped and 19% of the work was not started
According to the observation of the start-up situation of the paper mill around the packing station, the start-up situation of the whole paper-making end is gradually improving. In late March 2020, of the 122 packing stations under observation, 47 showed that there were paper mills around, accounting for 39%. Among them, there are 23 paper mills that have not been started, 24 of which have been shut down since the start of construction.
In the middle of April, 72% of the projects have been started, 12% have been shut down and 12% have not been started
By the middle of April, of the 134 packing stations observed, the number of paper mills that responded to the shutdown had decreased to 32, accounting for 24%.
In late May, 71% of the projects have been started, 13% have been shut down and 13% have not been started
By may 2020, of the 105 packing stations observed, 28 (26%) responded to the shutdown of paper mills. The proportion of total construction starts increased steadily from 59% in March to over 70%.
While paying attention to the data, the editor also reminded that under the premise of the end of the “anti epidemic” war and the recovery of the manufacturing supply chain, the status quo of the paper mills that have not yet started may be more worthy of attention. With the end of May, the “balance” in 2020 is only over seven months. For factories, enterprises that can’t start now are likely to no longer live outside.
In May, there was an urgent shortage of waste cardboard, and the price increased by 47%.
The purchase price of waste paper of 41 paper factories in China, 19 of which have been reduced. In the second quarter of 2020, the domestic waste paper market recovered well. Since the beginning of May, the control of foreign epidemic situation has been released slowly, providing strong momentum for the recovery of waste paper market confidence. Combing the basic changes of waste yellow board paper in the second quarter.
In the second quarter of 2020, the domestic waste paper market recovered well. Since the beginning of May, the control of foreign epidemic situation has been released slowly, providing strong momentum for the recovery of waste paper market confidence.
Price:
According to the monitoring data of Zhuo Chuang information, since the second quarter, the average price of national waste yellow board paper has risen first and then fluctuated in the interval. The rise is the repair of the Department that the price of national waste yellow board paper fell continuously in the first quarter, and the interval fluctuation is the market mentality instability caused by the unclear growth trend of the epidemic. However, since May, the control of foreign epidemic has been released slowly, which will provide some support for market confidence, which will be conducive to the price trend of waste yellow board paper in the later period.
Shipping margin:
In the second quarter, the purchase price of waste yellow board paper in the paper factory rose first and then fluctuated in the interval, guiding the narrow range operation of the shipping profit margin of the national waste yellow board paper packing station. According to the monitoring data of Zhuo Chuang information, the shipping profit margin of the national waste yellow board paper packing station in the second quarter was between 6% and 7%.
stock:
Then, since the second quarter, due to the arrival of waste paper for a long time is less, the paper factory’s waste yellow board paper inventory is at a low level. In addition, the sales of paper products are unstable, and the sales are sluggish most of the time. The interest and ability of paper mills to increase waste paper inventory is not high.
Demand:
Compared with the first quarter, the paper mill construction recovered significantly in the second quarter. According to Zhuo Chuang information monitoring data, the monthly demand for waste yellow board paper in April recovered to nearly 5 million tons, which is at a high level in recent years.
Summary:
In the second quarter, the domestic waste paper market mainly recovered, and the recovery level was good. At present, the control of the foreign epidemic will be released slowly, and the pressure of the epidemic on the price will be eased. On the other hand, the price support brought by the waste paper supply gap will gradually play an effective role.
In the United States, the price in May was 47% higher than that in April, reaching 760 yuan / ton
Under the influence of the new coronavirus, the main operators of recycled paper mills in the United States have encountered the price rise of raw materials RecyclingMarkets.net OCC’s current business price is $107 per ton, up from $73 per ton in April. Factory executives expect OCC pressure to continue for months.
Tim Nichols, senior vice president and chief financial officer of international paper industry, said that the price of fiber acceptance had quadrupled to that of early 2020. He said that most of the company’s paper mills use the mixture of raw fiber and receiving fiber, and under normal circumstances, when supply problems are solved, the company can flexibly solve these problems and balance raw and recycled materials. This is still the case at a certain level in the current situation, and Nichols points out that the shortage of accepted paper is expected to drive demand for raw pulp in the short term.

At the same time, Sonoco withdrew its income guidance for the year due to the economic turmoil caused by the outbreak. A large part of the uncertainty comes from the recycled fiber market. Julie Albrecht, vice president and chief financial officer, said the company expects OCC prices to rise in the second quarter due to changes in supply and demand brought about by covid-19. Kirk expects that by June, the price of OCC will reach 100 US dollars per ton RecyclingMarkets.net That’s more than $100 across the country.)

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