Paper prices are particularly cold this winter, and paper mills need this tool to hedge!

In the past two years, from the fourth quarter to the beginning of the following year, paper prices have always come out of a wave of small bull markets. This year, with the "peak season" coming again, the price of paper does not seem to rise. Paper mills are uncomfortable with the volatility of waste paper prices. In this year's downturn, small and medium-sized paper mills are eager to go to stock shipments, and large paper mills have difficulty in inventorying. Enterprises are in urgent need of relevant hedging tools.

The price of paper was particularly cold this winter. In the first two trading weeks of October, the A-share paper sector fell by as much as 12.11%.

According to business community data, last week, the overall price of waste paper was lowered by 50-200 yuan / ton. As of last Saturday, the average price of waste yellow paperboard market was 2,244.29 yuan / ton, down 3.08% compared with the beginning of the week. The average ex-factory price of corrugated paper was 3,743.33 yuan / ton, down 1.32% compared with the beginning of the week.

Insiders pointed out that the recent waste paper market continued to be sluggish. Although it rebounded at the beginning of October, the rebound was obviously not strong and has now dropped back to a low level. The downturn in waste paper has also dragged down the price trend of corrugated paper. At this time of the previous year, the paper price has begun to take off. Correspondingly, the paper stock is also the "sweet" of many stockholders in the winter stocks.

It is understood that the relevant policy changes are the main reason behind the lack of prosperity in the peak season of paper prices this year. However, in the past two years, under the policy of “Prohibition of the implementation of the reform of the import management system for the import of solid waste into foreign solid waste” and the “Regulations on the Environmental Protection of Imported Waste Paper”, the supply of waste paper as a raw material for the paper industry in China is limited. All the way up.

But this year the situation is very different. According to the newly published Catalogue of Imported Waste Management, among the 32 kinds of solid wastes that were listed as banned from import on December 31, 2019, waste paper is not included.

Business community analysts believe that this also means that by 2021 China will still allow the import of waste paper. Affected by this, the national waste price has been falling all the way, which directly led to the pressure on the price of raw paper.

It used to be the "fragrance" of the stockholders' stocks, but now it has been left out. In the first two trading weeks of October, the A-share papermaking sector fell by 12.11% and 4.08%, respectively, and clearly underperformed the Shanghai Composite Index for the same period.

Waste paper prices fluctuate drastically, paper companies need futures tools to hedge

Paper mills are uncomfortable with the volatility of waste paper prices. According to business analysts, since 2000, almost all of China's new cardboard papers have been derived from recycled fiber. However, due to the sorting and recycling of domestic waste paper, China's papermaking enterprises have relied on imported recycled paper to maintain production. . The fluctuation of waste paper prices is closely related to the survival of enterprises. In this year's downturn, small and medium-sized paper mills are eager to go to stock shipments, and large paper mills have difficulty in inventorying. Enterprises are in urgent need of relevant hedging tools.

“Wood pulp is one of the world's major bulk trade commodities that is not traded in mature futures markets. Among China's high share of global bulk commodity imports, iron ore, soybeans, rubber and wood pulp, only wood pulp currently has no futures market. China, Western Europe and the United States are the three major pulp markets," said Gao Linlin, an analyst at Guotai Junan Futures.

It is understood that pulp is the raw material of papermaking. According to the process, pulping can be divided into chemical pulping, chemical mechanical pulping and mechanical pulping. The pulping raw materials usually include wood, bamboo and non-wood (including rice straw, Reed, fern residue and waste paper. The downstream of global pulp includes: global household paper, global uncoated cultural paper, global coated cultural paper, global newsprint, global box corrugated and so on.

In addition, China's annual consumption of various types of paper is 110 million tons, and the average per capita is 77-78 kilograms, which is higher than the world average of 57 kilograms.

Pulp futures will be listed on November 26, helping to strengthen paper companies' risk resistance

Chang Depeng, a spokesperson for the China Securities Regulatory Commission, said that the China Securities Regulatory Commission has recently approved the Shanghai Futures Exchange to conduct pulp futures trading. The contract is officially listed on November 26, 2018. According to industry insiders, the price of waste paper fluctuates drastically, and the demand for safe-haven enterprises has soared. The launch of pulp futures coincides with the time, which helps to improve the industry's ecology and increase the resistance of paper-making enterprises to risks.

Pulp is an important raw material for the paper industry. China's paper industry has a long industrial chain, and there are many participants in the pulp market. In recent years, due to multiple factors, pulp prices fluctuated greatly and frequently, and the production and operation of related industries were greatly affected. Market participants called for the introduction of pulp futures. The development of pulp futures trading can provide the industry with price discovery and hedging tools to support the steady and healthy development of the paper industry.

Chang Depeng said that the CSRC would urge the Shanghai Futures Exchange to continue to make preparations to ensure the smooth launch and steady operation of pulp futures. Pulp futures were established at the end of 2013 and have been in preparation for more than five years. At the end of last year, Shanghai Futures Exchange people publicly stated that the pulp futures contract and related business rules have been basically completed. On October 11 this year, the Shanghai Futures Exchange issued a notice to publicly solicit opinions on pulp futures contracts and related rules.

The paper industry is China's basic raw material enterprise. The entire industrial chain is divided into the upstream pulp manufacturing industry, the middle paper industry and the downstream paper product manufacturing industry. The upstream involves agriculture and forestry, and the downstream involves the packaging, printing and consumer industries of various types of paper products. The whole product involves many industries and has obvious pulling effect on the development of domestic related industries.

Hu Zhanguo, manager of the commodity second department of Shanghai Futures Exchange, once said that the mode of pulp futures listing will be transformed into the “industry + finance” model. The listing of pulp futures will increase the pulp price discovery ability, enhance the pricing power of pulp in China, and improve the surrounding market. The price penetration is conducive to serving the real economy, optimizing the industrial structure, and improving the sequence of China's futures products. Pulp futures can be standardized and easy to test, so it meets the requirements of the subject matter setting, the market scale is large, the degree of marketization is high, there is a good participation subject, the high-efficiency five-in-one monitoring system and the experience of other listed varieties that are now running smoothly in the previous period. It will provide institutional guarantee for listed pulp futures.

Chang Depeng said that at present, the preparations for introducing PTA futures to overseas traders have been basically completed. Taking into account all factors, PTA futures will officially introduce foreign traders on the Zhengzhou Commodity Exchange on November 30, 2018. Since the beginning of this year, China's futures market has made breakthroughs in opening up to the outside world. Previously, crude oil and iron ore futures have successfully introduced overseas traders.

Recommended reading: What is the reason why kraft paper is stronger than ordinary paper?

Responsible editor: Ge

Article source address: http://

A2 LED Light Pad

The designer fully draws on the international popular factors, and the streamlined design has created a precedent for the shape of the copy table. The most advanced LCD backlight technology is adopted, and high-brightness and energy-saving LED (light emitting diode) is used as the light source, so that the light uniformity and brightness of this product are qualitatively improved compared with the traditional copy table, and the display effect can be similar to that of the LCD comparable.

A2 LED Light Pad,LED Light Pad Tracing Board,Best LED Light Pad

Guangdong Jishengke Industrial Co.,Ltd , https://www.jskpad.com