The hottest waste paper acquirer experienced ups a

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Ups and downs of waste paper acquirers: the paper industry bid farewell to the golden period

Li Wen (a pseudonym), a waste paper acquirer in Shandong, has been very insecure in recent months. Although there is sufficient supply in hand, the sales situation has plummeted. For working capital, Li Wen began to sell his waste paper at a low price. Even so, some customers are still delisting

as the raw material of some paper mills, the price of waste paper continues to fall due to the continuous reduction of enterprises' demand for it. The entire paper industry is also facing a decline in performance. As of the 29th, among 13 paper companies such as Huatai Co., Ltd. and sun paper, which have disclosed the third quarterly report, the performance of paper enterprises in the third quarter fell by nearly 50% month on month

Lishixin, chief analyst of paper industry at Guosen Securities, believes that after experiencing rapid growth in the first half of the year, the paper industry began to experience oversupply in the second half of the year. The decline of the overall economic situation and the hoarding of downstream customers were the main reasons for the gradual deterioration of the supply-demand relationship during this period. Li Shixin said so


in the first half of 2008, paper enterprises ushered in a golden period of rapid development. From January to may, the sales revenue of China's paper industry increased by 28.34% year-on-year; The total profit was 10.507 billion yuan, an increase of 61.65% year-on-year, but this high growth has passed away in the third quarter

on October 25, Huatai Co., Ltd., the largest paper producer in China, released its third quarter report, which showed that the operating income of Huatai Co., Ltd. in the third quarter increased by 4.67% year-on-year, but decreased by 15.39% month on month; Net profit decreased by 25.06% year-on-year and 55.79% month on month

caoyantao, director of the Securities Department of Huatai Co., Ltd., explained that because most downstream customers such as printing plants were waiting at this time, the company's sales volume fell, coupled with the rise in early costs in the third quarter, resulting in a decline in the company's performance in the third quarter

the company's recent international trade business has been greatly affected, with a lot less orders. Many customers are waiting and hoping that the price can be lower. Mr. Wang of the International Trade Department of Huatai Group said helplessly

according to Mr. Wang, Huatai Group's export customers are mostly in Asia, mainly in India, Hong Kong, Malaysia and other places. In 2007, it was the golden time for Huatai international trade business, and orders were full at that time

an insider revealed that Huatai Group's export volume reached 250000 tons last year, but this year's export volume is expected to be less than 100000 tons. This is a big gap from last year. The person said

Zhou Haichen, an analyst of Shenyin Wanguo paper industry, believes that the decline in the third quarter performance of Huatai shares is mainly due to the sharp decline in raw materials, and the company's inventories are purchased at high prices, which leads to the fact that the cost of Huatai shares has not decreased when the price of raw materials continues to fall

on the other hand, since the third quarter is the off-season of paper sales, the sales volume is certainly worse than that in the second quarter. Moreover, when the price of paper rose sharply to a high price of more than 6000 yuan/ton, it was dissatisfied by downstream paper enterprises, who hoped to use the off-season to lower the price of paper, so the purchase volume decreased. Zhou Haichen said

a salesperson from sun paper said that since mid August, the sales price and sales volume of the company's cultural paper, copper paper and white cardboard have shrunk, which directly led to the decline in sales revenue

the days when orders were full no longer exist. At present, orders are cold, and the capacity utilization rate of the company is only about 60% to 70%. Only cultural paper can maintain the original production capacity. The person said

the quarterly report shows that the net investment income of sun paper in the third quarter was -8.5387 million yuan. It is reported that in August, 2008, Shandong International Paper Taiyang white board Co., Ltd., a subsidiary of Taiyang paper, began trial production, but then the market of white board fell sharply, resulting in the loss of the joint venture in August and September

in the first half of the year, Wanguo paper taiyangbai cardboard Co., Ltd., another joint venture that contributed 33.6808 million yuan of investment income, just maintained a profit and loss balance in the third quarter. The operating conditions of the two joint ventures directly led to investment losses in the third quarter, seriously weakening the company's third quarter results. Zhou Haichen said

inflection point

Li Wen said that the film blown out by high-pressure PE is suitable for all kinds of fresh-keeping bags. The latest month is the first time he has seen five price fluctuations in such a large set of input ports since he was engaged in the waste paper purchase industry for six years. If the price falls again, I can only suspend business. Li Wen said

as a waste paper dealer, Li Wen handles tens of thousands of tons of waste paper every year. Last year, the rising price of waste paper also made Li Wen taste the sweetness, so Li Wen spent another sum of money to expand his storage capacity

but to his surprise, the price of waste paper began to fall since September, and fell sharply in October. I'm afraid the money just spent will be ruined again. Li Wen said helplessly

at present, most of the raw materials used by Huatai Co., Ltd. in the production of paper are waste paper from the United States. Relevant statistics show that the latest price of American waste 8 in China on October 30 was about $190 per ton, while this price was about $280 per ton a month ago

according to the disclosed quarterly report data, the inventory in the fourth quarter will continue to bring greater cost pressure to relevant companies, which also makes them unable to benefit from the fall in raw material prices in the short term. Among them, the inventory of Bohui paper increased by 26.5% compared with the same period last year, accounting for 22.2% of sales revenue. As Huatai increased the purchase of waste paper in the United States in the third quarter, its inventory increased by 420million yuan in a single quarter

liguoxin, the general coordinator of sun paper marketing center, although he repeatedly said that he would not be affected when talking about the company's sales performance in the third quarter, he was also worried about the future market

Zhou Haichen said that the paper industry had a sharp rise in March and reached a high point in the second quarter. However, the pollution and impact of plastic packaging materials on the ecological environment began to be reduced and eliminated in July, and the Wall Street financial crisis occurred in September, resulting in a downward trend in the business cycle of the whole industry

Li Shixin believed that the growth rate of fixed asset investment in the paper industry in was much higher than that in 2006, which led to the continuous production of projects prepared in the past two years, resulting in the gradual overcapacity of some paper varieties

this is a natural cyclical fluctuation of the paper industry, but at this time, the rapid economic decline led to the rapid contraction of demand. The whole industry suddenly fell from the high point and included the colored lime sand bricks and the corresponding performance and color difference experimental methods in the standard, which was unexpected. Li Shixin said

overcapacity is particularly evident in packaging paper. At present, the largest packaging paper manufacturers in China are Zhang Yin's Nine Dragons Paper and Liwen paper, which together account for 1/3 of the domestic packaging paper market. Among them, Nine Dragons Paper has a production capacity of about 6million tons, and Liwen paper has also developed to a production capacity of more than 3 million tons

Li Shixin also believes that wrapping paper has reached a high point since 2007, and it has been a year since the boom has declined. This is mainly related to the uncontrolled expansion of several large factories

the current share price of Nine Dragons Paper has plummeted by more than 90%, from nearly HK $27 at the peak to less than HK $1 at the minimum. In recent years, Nine Dragons Paper has adopted the strategy of excessive expansion, which has led to changes in the supply-demand relationship of the entire packaging paper industry in a short time. The sharp rise in output continues to drive down the price of paper. Zhou Haichen said

coincidentally, on October 30, the Forbes 2008 China rich list was released. Zhang Yin, once the richest woman, fell sharply to 231 from 11 last year, with her wealth shrinking by 92.90%, leaving only 1.8 billion yuan. You know, two years ago, the richest woman with infinite scenery also had a value of 30billion yuan

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