Talk every Monday: the Ministry of industry and information technology issues the specification conditions for waste paper processing industry
Event: the state issued waste paper industry standard documents to promote the healthy and orderly development of the industry. On December 20, 2021, the Ministry of industry and information technology issued the standard conditions for waste paper processing industry to guide the high-quality development of waste paper processing industry and improve the level of waste paper intensive processing. This announcement will be officially implemented from January 1, 2022.
"Ban on waste" triggered a sharp rise in the price of waste paper in China. On November 25, 2020, the Ministry of ecological environment, the Ministry of Commerce, the development and Reform Commission and the General Administration of Customs issued an announcement on matters related to the total prohibition of the import of solid waste, which made it clear that the import of solid waste in any way is prohibited from January 1, 2021, including waste paper. Affected by this policy, China's waste paper price rose sharply in December of the same year, and China's waste paper import fell sharply in January 2021.
Waste pulp is an important raw material for papermaking, and the market demand is huge. Pulp is an important raw material in the paper industry. According to the source of raw materials, it is mainly divided into three categories: wood pulp, non wood pulp and waste pulp. Among them, waste pulp accounts for a large proportion of pulp consumption. According to the statistics of China paper Yearbook, from 2014 to 2020, the proportion of China's waste pulp consumption in the overall pulp consumption has always been maintained in the range of 55% - 65%, and China's paper industry has a large demand for waste pulp.
There is room for improvement in China's waste paper recovery rate. According to the statistics of Zhuo Chuang information, China's dependence on waste paper import was 36.02% in 2016 and 10.72% in 2020. In recent years, China's dependence on waste paper import has shown a downward trend year by year, but mainly because the state has continuously issued policies to regulate waste paper import. Previously, the high dependence of China's waste paper industry on imports was mainly due to the low waste paper recovery rate in China, which remained below 50%, far lower than the 80% waste paper recovery rate in European and American countries. There is room for improvement in China's waste paper recovery rate.
The new industrial regulations benefit the leading enterprises in the waste paper processing industry. In the future, with the continuous introduction and improvement of policies and regulations, the standards of China's waste paper processing industry will continue to improve. For leading enterprises, this is conducive to continuously improve their technical level and give full play to their scale advantages; For small and medium-sized enterprises, higher industry standards bring a sharp increase in cost pressure. The concentration of waste paper processing industry is expected to increase in the future.
Market review (December 20 - December 24):
Among the Shenwan level industries, the light industry manufacturing industry rose 0.48% this week, ranking 11th among Shenwan 31 level-1 industries, outperforming the market. Among the sub sectors, the household goods sector performed better, up 1.76%, and the paper sector performed poorly, down 1.70%; The textile and garment industry fell 0.73% this week, ranking 17th among Shenwan's 31 primary industries, losing the market. Among the sub sectors, the textile manufacturing sector fell 0.03%, the clothing and home textile sector fell 0.69%, and the jewelry sector fell 2.49%.
Industry data tracking:
Furniture: the price of wood this week is basically the same as that last week, and the prices of TDI and MDI have increased
Papermaking: according to Zhuo Chuang information, in terms of pulp, on December 24, the market price of coniferous pulp was 5862.32 yuan / ton, up 5.86% from last Friday; The market price of broad-leaved pulp was 4981.82 yuan / ton, down 0.23% from last Friday; The market price of natural color pulp was 6083.33 yuan / ton, unchanged from last Friday; The market price of chemical mechanical pulp was 4400 yuan / ton, up 0.38% from last Friday. In terms of packaging paper, on December 24, the market price of corrugated paper was 3900.63 yuan / ton, down 5.15% from last Friday; The market price of white cardboard was 6099.29 yuan / ton, unchanged from last Friday. In terms of cultural printing paper, on December 24, the market price of double offset paper was 5612.5 yuan / ton, down 0.22% from last Friday; In terms of household paper, the market price on December 24 was 6433.33 yuan / ton, up 0.26% from last Friday.
Textile and clothing: on December 24, the price of cotton was 21905 Yuan / ton, up 0.33% over last week; Yarn and polyester prices also fell.
Investment strategy:
Recently, the policy of the real estate industry tends to be relaxed. The national development and Reform Commission supports "furniture to the countryside" and encourages the implementation of furniture to the countryside subsidies. We believe that we can pay attention to the home sector in the near future, and we suggest paying attention to [ Oppein Home Group Inc(603833) ] and [ Suofeiya Home Collection Co.Ltd(002572) ]; Software home is recommended to pay attention to [ Jason Furniture (Hangzhou) Co.Ltd(603816) ] and [ Xlinmen Furniture Co.Ltd(603008) ].
Risk tips: raw material price fluctuation risk and exchange rate fluctuation risk.
