In the first season of 2012, the stocking of high price raw material in paper factory has been decreased, the price and sales of paper is facing slight increase due to the more stocking require of trader and downstream printing factory. It is expected to be improved in the performance of paper industry. Since the decrease of paper industry in May 2011,it has resulted in some share price has hit the net assets, Chenming Paper Industry PB0.75X, Huatai Share PB0.69X, Bohui paper Industry PB0.90X and Yueyang Paper Industry PB0.94X.
Raw material market: The international wood pulp price has a small increase of this period. Since the coming of Spring Festival, the price of domestic wood pulp future stock and spot goods has kept flat as last week, few deals and the price of import waste paper kept stable.
Price and sales of paper: Since the coming of Spring Festival, more traders start to stop the trading and take the vocation, the price keep stable and less deals.
Industry dynamics: Brazil Jinyu has announced to raise the quotation in Feb, also Xueshan. In Dec of 2011, the stocking of Europe pulp paper has increased.
Risk warning: The price of raw material of facing serious fluctuations, systemic risk.