According to the Financial Association (Hangzhou, reporter Luo Yichen), under the background of banning the import of foreign wastes, the price of American waste paper pulp (pulp made of American waste paper), the core raw material of industrial packaging paper, has risen, and the layout of overseas pulping is expected to influence the competition pattern of the industry in the next few years.
According to the associated press of Finance and economics, at present, there are various ways for domestic paper enterprises to guarantee the supply of waste pulp in the United States. However, in the long run, it will be the best solution to arrange overseas pulping and import flake pulp into China. Considering the tightening of overseas approval and the increasing difficulty of new projects, overseas pulping may become a “game for a few people”.
On the afternoon of May 12, a reporter from the financial association arrived at the headquarters of Jingxing paper (002067. SZ) in Jiaxing, Zhejiang Province. Yao Jieqing, Secretary of the board of directors of the company, said that in the past, paper enterprises tried many means to import American waste pulp.
“One is to produce wet pulp by using old foreign pulping equipment, but the disadvantages are relatively heavy, high freight and easy deterioration. In addition, the waste pulp is dried into paper by idle papermaking equipment and imported in the form of roll pulp. Last year, foreign paper-making was in a downturn. At that time, there was some surplus production capacity of paper-making. However, with the recovery of overseas paper-making, now we can only transfer to India to produce roll pulp. At present, we also operate in this way. This form of import customs tariff is levied on finished paper, which is higher than pulp. ” Yao Jieqing said.
She told the financial associated press that after the outbreak of the epidemic in India, the supply of foreign waste pulp has become the company’s current focus. As of May 12, the company learned that India’s production, transportation and customs are still operating as usual and have not been affected for the time being.
What needs to be vigilant is that it has been reported that Foxconn’s Indian factory has been forced to reduce production, and Wentai Technology (600745. SH) has also been hit hard by the share price of its Indian factory, so there are still large variables in the impact of the epidemic. But relatively optimistic is that compared with the electronic production line, the paper production line is relatively simple and requires less personnel. The reporter saw in Jingxing paper factory that there are almost no people in the pulp workshop, and only a small number of workers operate in the paper workshop.
Inside the paper making workshop of Jingxing Paper Co., Ltd
It is understood that waste paper pulp used to be a part of the processing process after the paper mill purchased waste paper. However, due to the ban on foreign waste, the paper mill has changed from imported waste paper to imported waste paper pulp. This kind of deep processing product is relatively unfamiliar to paper enterprises. At present, only one production line of Sun Paper (002078. SZ) in Laos is specialized in waste paper manufacturing, with an annual output of 400000 tons, Other manufacturing methods are more or less faced with tariff, quality, stability and other issues.
After sun paper, Jingxing paper’s Malaysia project is expected to be completed in the fourth quarter of this year, including 800000 tons of waste pulp board and 600000 tons of packaging base paper. According to the data of China waste materials network, the recent price of waste in the United States is about 250 US dollars per ton, and the price of waste paper pulp in the United States is close to 500 US dollars per ton. The price difference between the two is more than 200 US dollars per ton, and the profit is considerable.
It should be noted that projects in Southeast Asia also face certain epidemic risks. Malaysia announced that the “action control order” should be restarted nationwide from May 12th to June 7th to curb the spread of COVID-19. Jingxing paper said that the construction of the project will not be affected temporarily. As for the impact of the outbreak in Laos, a reporter from the finance associated press called sun paper, but as of press, no one answered.
According to public reports, in recent years, Southeast Asia has become a sea going destination for domestic paper enterprises. Malaysia alone has attracted investment from Jingxing paper, Liwen paper (02314. HK), Shanying International (600567. SH), Jianhui paper and Zhejiang Xinshengda. However, the reporter from the finance Associated Press understands that Malaysia’s approval is tightening, and the progress of some of the above projects is unclear, Whether it can be implemented smoothly still faces certain risks.
Post time: May-21-2021