Gypsum board expected to raise prices again
The import quota of foreign waste has been greatly reduced in 18 years, and the price of foreign waste / national waste will continue to increase. Affected by the environmental protection policies of the paper industry in China, the approval quota for the first two batches of waste paper imports in China in 2018 was 90.1% lower than that in 17 years, of which 17 years The first two batches of quota accounted for 84.8% of the whole year. The foreign waste quota will continue to be approved in 2018, but the total amount for the whole year will be significantly reduced compared to 17 years. With the tightening of waste supply, it is expected that the price of waste / national waste will continue to rise in 2018. As the Chinese New Year is approaching, the demand for domestic packaging paper (raw materials are national waste) has increased again. From January 2 to 3, 18, 22 of the 24 paper companies nationwide raised the purchase price of waste paper by about 30-100 yuan.
The price of gypsum board paper is expected to increase, which will help the company to raise the price again: At present, the highest proportion of the cost structure of gypsum board is veneer paper (about 60%), and the main raw material of veneer paper is US waste / national waste . Affected by the stricter 18-year foreign waste import policy
1) Small paper companies (paper companies with an annual production capacity of less than 300,000 tons) are prohibited from applying for import of waste paper. Small companies in the facial tissue industry will accelerate their withdrawal, and the market share / pricing power of large facial tissue companies will increase;
2) The upward movement of the price of foreign waste / national waste will increase the production cost of facial tissue paper, and facial tissue companies will pass on the costs downstream, driving up the price of facial tissue paper. The company's gypsum board products adopt the "cost plus" pricing model. As costs continue to increase, we believe that the company is expected to start gypsum board price increases again with a high market share, which will help the company's profitability increase.
