Slurry price resumption and deduction, this round of costs into the decline cycle

By the end of 2021, Shanying International has a total of 5.87 million tons of existing production capacity in China, a total of 1.77 million tons of production capacity under construction, and a total of 3.1 million tons of planned production capacity. Among them, Jilinshan Company has continuously improved its domestic regional layout through self-construction and mergers and acquisitions. At present, it has built five papermaking bases in Maanshan, Anhui Province, Jiaxing, Zhejiang Province, Zhangzhou, Fujian Province, Jingzhou, Hubei Province and Zhaoqing, Guangdong Province, with a production capacity of about 6 million tons, ranking among the top three in the industry. The company's packaging plate enterprises are located in economically developed areas along the river and coast, close to the industry's head customer gathering place, and the industry radiates Jiangsu, Zhejiang and Anhui.

The company promotes the international strategic layout through the acquisition of recycled fiber resources, the deployment of advantageous markets and high-end paper varieties. The company continues to trade in the United States, the United Kingdom, Australia, Japan, the Netherlands and other major sources of recycled fiber, and distributes recycled pulp in Southeast Asia and Europe to ensure the high-quality supply of upstream raw materials. The company's participation in Nordic Paper and its holding subsidiary Phoenix Paper belong to the highly profitable paper segment. Nordic Paper has a total production capacity of 500,000 tons of high-end special pulp and paper, and Phoenix Paper has an annual production capacity of 300,000 short tons of multi-category cultural paper. Its main products are food greaseproof paper, special kraft paper, high-strength paper bags and cultural paper. Through the horizontal extension of the industrial chain, it further improves and optimizes the company's existing product structure, and effectively reduces the impact of fluctuations in domestic wrapping paper.

2.5, Sun paper: Sun paper bottom established, β and α resonance

Sun paper bottom is established, beta resonates with alpha. 2008 financial crisis, stock price decline; 2009-2010 "4 trillion" plan was introduced, the profit of paper enterprises recovered, the industry fixed investment increased, and the stock price rose; From 2011 to 2014, new production capacity was released intensively, overcapacity, and stock prices bottomed out. In 2015, the economy entered the poor side, the stock price was at the bottom, and the "buffalo" market rose and fell; 2016-2017 supply-side reform, stock prices up; In 2018, trade frictions hit economic expectations and exports, and stock prices fell; In 2021, the price of wood pulp and paper will rise, and the stock price will rise; At present, the bottom of the Sun paper industry is established, the paper β market and the Guangxi expansion α resonance.

Sun Paper industry is rich in categories, and the company carries out diversified strategic layout. When listed in 2006, the company's product line was limited to coated paper, uncoated textured paper, white board paper with gray background and white cardstock paper with partners. In 2011, we developed a series of dissolving pulp products, expanded the household paper business in 2014, and expanded the cow leather box board paper business in 2016. Sun Paper industry has cost advantages, and the purchase price of Sun paper wood pulp is better than the market level. The market price of wood pulp from 2017 to 2021 is 4792 yuan/ton, 5219 yuan/ton, 3510 yuan/ton and 4744 yuan/ton respectively, and the cost of wood pulp purchased by the Sun paper industry is 4218 yuan/ton, 5099 yuan/ton, 3299 yuan/ton and 4500 yuan/ton respectively, with a price difference of 200 to 500 yuan/ton. Taiyang paper industry has a certain cost advantage.

The price fluctuation of dissolved pulp and wood pulp is basically the same. In addition, dissolved pulp is used to prepare viscose staple fiber, and viscose staple fiber is a substitute for cotton flowers, which can be used in the garment and textile industry, so the supply and demand of dissolved pulp are closely related to the cyclical nature of viscose staple fiber, cotton and textile industry. In the second half of 2017, the production capacity of dissolved pulp was delayed, and the import of dissolved pulp was affected by the global economic pattern, so the price of dissolved pulp deviated from the price of wood pulp. In the past 22 years, all links of the dissolved pulp industry chain have shrunk. Among them, the contraction of the source end and the consumption end is more than 7%, the contraction of the manufacturing end is slightly more than 5%, the contraction of exports is less than 4%, and the cost of the downstream viscose factory to buy dissolved pulp is increased, and it is difficult to transmit downstream.

Third, special paper: demand is expected to continue to help support prices beyond expectations, cost decline & orderly expansion of production capacity, β and α

There are many sub-sectors of special paper. As the industry leader, Xianhe Shares cover many sub-sectors such as tobacco, decoration, food, Glasin, heat transfer, label release, etc. Wuzhou Special paper is deeply engaged in food wrapping paper and Glasin paper, and will expand to other fields in the future.