Major Events in the Papermaking Sector in 2009: Demand Recovery Policy Drives

1. The papermaking sector performed significantly better than the market. Looking back on 2009, the paper packaging sector ranked 17th in the Tianxiang industry, with an increase of 111.47% for the whole year, while the Shanghai Composite Index rose by 79.98%. Paper and packaging stocks were significantly stronger than the broader market.

2. Review in 2009: Benefit from the stabilization and recovery of the macro economy. In 2009, the prosperity of the paper industry showed a trend of picking up quarter by quarter. At the beginning of 2009, the paper industry faced a weak market in downstream demand. However, as the state increased policy input to stimulate domestic demand, the light industry revitalization plan introduced incentives for export, paper and paper products enterprises gradually resumed normal production and operation, and the operating rate and production and sales rate all returned to normal levels. At the same time, with the downstream demand gradually recovered, papermaking and The profitability of paper products enterprises has gradually picked up.

3. Outlook for 2010: Further improvement in industry benefits and improved product bargaining power. China's paper packaging industry is highly correlated with GDP as a traditional light industry, and it is more related to the proportion of consumption in the troika. The Tianxiang Macro Strategy Group expects GDP growth to rebound to 9.6% in 2010, and considering that relying on large-scale investment to stimulate GDP growth is not sustainable, the weight of future consumption in GDP will gradually increase; in addition, the 2010 Shanghai World Expo It will also have a certain role in promoting consumption. Therefore, as the macroeconomic expectations are expected to pick up further, the paper industry's benefits will further increase. On November 26, 2009, China officially announced its action target of controlling greenhouse gas emissions, and decided to reduce its carbon dioxide emissions per unit of GDP by 40%-45% in 2020 compared with 2005. As a typical high-pollution and high-energy-consuming industry, the paper industry may further increase its efforts to eliminate backward production capacity under the influence of this low-carbon storm, which will trigger a new round of industry integration and improve the oversupply of the paper industry. Coupled with the year-on-year increase in exports, we expect that the relationship between supply and demand in the industry will further improve in 2010, competition pressure will ease, product bargaining power will increase, and prices of various paper types will generally increase.

4. Investment Strategy in 2010: With the further recovery of the macro economy in 2010, the paper packaging industry is expected to maintain a high degree of prosperity. Therefore, maintain an investment rating of “overweight” in the industry.

Judging from the subdivided paper types: 1) Benefiting from the macroeconomic recovery, the degree of rebound in the demand for cardboard paper and white cardboard with greater elasticity of demand will be more obvious next year; 2) Cultural paper will The dynamic balance is achieved under the policy of favorable policies and new capacity; 3) The competitive environment faced by newsprint will be fierce, and domestic overcapacity will be more obvious; 4) For coated paper, there will be more new capacity in the future. Will have a greater impact on the coated paper industry.

Spherical Packing Machine

Spherical Packing Machine,Candy Packing Machine,Lollipop Wrapping Machine

U-PAC CO.,LTD , https://www.upac-machinery.com