BEIJING, July 12 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes prices in China's paper pulp industry.
From early 2010 to mid-March, the price of paper pulp has been soaring. From March 9th to 10th, the span of only two days, the domestic price of paper pulp in China rose from 700 to 1,000 yuan/ton -- a rise of 10-15%. The current price of the domestic pulp has brought a lot of impact for the paper industry.
The most direct impact of the rise in pulp prices has been increased costs involved in the procurement of raw materials for paper companies. This has greatly compressed the paper enterprises' profit space. However, from the perspective of the entire paper industry, the rise in paper pulp prices will also have some positive effects.
Procurement costs account for 65% of the paper pulp enterprises' total production cost. Pulp prices rising will be directly passed to various paper products, and a rise in paper product prices will suppress part of the market demand. With profitability thusly squeezed, the first half of the domestic paper industry's profitability is not optimistic.
Substantial increases in pulp prices also have some positive effects. On the one hand, the pulp price can relieve some of the pressure of environmental protection in the industry, while also, on the other hand, increased prices may prompt some companies to improve product structure, to produce more high value-added paper products and enhance enterprise profitability, which will promote upgrades and competitiveness throughout the entire paper industry.
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