Last month, paper giants such as Zhongshun Jierou, Hengan International, Vinda International, and Jinhongye Paper successively issued price adjustment letters, announcing a comprehensive price increase for their products in April.

Following the end of last year, household paper once again experienced a price increase in April.

What is different from previous rounds of price increases is that this industry price increase was initiated by leading paper companies. Last month, paper giants such as Zhongshun Jierou, Hengan International, Vinda International, and Jinhongye Paper successively issued price adjustment letters, announcing a comprehensive price increase for their products in April.

Regarding the reasons for price increases, the answers given by leading paper companies are the continued rise in raw material prices. The price of wood pulp, the main raw material required for household paper, has been rising since the second half of last year, and this year's price trend is even more dramatic. Under pressure, paper companies had no choice but to adjust prices.

What impact will this round of price increases have on the end consumer market? A reporter from the 21st Century Business Herald found that although the current price increase of household paper is gradually being transmitted downstream, it has not yet spread to the terminal retail market on a large scale.

The leading paper manufacturer leads the price increase

html On April 9, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, hosted a symposium of economic situation experts and entrepreneurs to analyze and study the current economic operation and listen to opinions and suggestions on the next step of economic work. At the

symposium, experts such as Zhang Xiaojing, Peng Wensheng, and Ma Bin, as well as the heads of Guangzhou Baiyun Electrical Appliance Group, Zhejiang China Commodity City Company, and Ctrip Travel Network, spoke. They believed that the national tax reduction and fee reduction policies are both practical and effective, and the entire economy and enterprise production and operations continue to recover, but the sharp rise in international commodity prices has put great pressure on enterprises to increase costs.

Since the end of last year, the price increase in the paper industry has been affecting the nerves of many companies. In April, the household paper industry once again ushered in a price increase.

"Recently, due to the continuous increase in raw material prices, the company's production costs and operating costs have continued to increase. In order to ensure that the company continues to provide stable, high-quality products and services to customers, our company plans to increase the price of Zhongshun Jierou's household paper products to 4 Significant adjustments will begin on March 1st..." Last month, Zhongshun Jierou's price adjustment letter attracted widespread attention.

What has attracted more market attention is that within a week, leading domestic paper companies such as Vinda Paper, Hengan Group, and Jinhongye Paper (the parent company of "Qingfeng") have issued "price increase letters", announcing that starting from April 1 Starting from raising the prices of some products.

"The paper giants announced price increases in unison, which was rare before. At the end of last year, household paper also went through a round of price increases, but the leading paper companies did not follow up." An industry analyst told 21st Century Business Herald the reporter said.

As for the reason for this round of household paper price increases, several leading paper companies have pointed their finger at the soaring price of upstream raw material pulp.

Heng'an Group's price adjustment notice shows that "due to the continued sharp rise in the cost of imported wood pulp and bulk materials, starting from April 1, the promotional supply prices of the company's related tissue products will gradually increase by 10%-20%."

A copy of 3 The "Qingfeng" brand paper product price increase notice at the beginning of the month also stated that pulp prices have been rising recently, and now the softwood pulp has reached 7,400 yuan/ton, the broadleaf pulp has reached 6,400 yuan/ton, and the futures price is even higher. Pulp prices this year are expected to exceed the peak of 8,900 yuan/ton in 2017.

Xu Yinan, chairman of Guangdong Bilon Household Paper Co., Ltd., said that the most important raw material for household paper is wood pulp, which accounts for about 60% of the total costs of papermaking companies. Since the third quarter of 2020, wood pulp prices have continued to rise, and now have nearly doubled.

Chen Zhu, secretary-general of the Guangdong Paper Industry Association, told the 21st Century Business Herald reporter, "Since the beginning of this year, pulp futures prices have continued to rise, which has led to a sharp increase in spot prices. The excessive rise in upstream raw materials has caused a negative impact on the production costs of paper companies. A lot of pressure."

The terminal market impact is limited

Zhongshun Jierou, Vinda Paper, Heng'an Group, and Jinhongye Paper are all leading paper manufacturers, and these companies occupy the vast majority of domestic household paper. What will be the impact on the terminal retail market when leading paper companies announce price increases? A reporter from the 21st Century Business Herald found that the current price increase has not yet spread to the terminal retail market.

html On April 10, a reporter from the 21st Century Business Herald found in a supermarket in Guangzhou that many brands of toilet paper, tissue paper, etc. were placed on the shelves, all of which were in sufficient supply.

Following the end of last year, household paper once again experienced a price increase in April.

What is different from previous rounds of price increases is that this industry price increase was initiated by leading paper companies. Last month, paper giants such as Zhongshun Jierou, Hengan International, Vinda International, and Jinhongye Paper successively issued price adjustment letters, announcing a comprehensive price increase for their products in April.

Regarding the reasons for price increases, the answers given by leading paper companies are the continued rise in raw material prices. The price of wood pulp, the main raw material required for household paper, has been rising since the second half of last year, and this year's price trend is even more dramatic. Under pressure, paper companies had no choice but to adjust prices.

What impact will this round of price increases have on the end consumer market? A reporter from the 21st Century Business Herald found that although the current price increase of household paper is gradually being transmitted downstream, it has not yet spread to the terminal retail market on a large scale.

The leading paper manufacturer leads the price increase

html On April 9, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, hosted a symposium of economic situation experts and entrepreneurs to analyze and study the current economic operation and listen to opinions and suggestions on the next step of economic work. At the

symposium, experts such as Zhang Xiaojing, Peng Wensheng, and Ma Bin, as well as the heads of Guangzhou Baiyun Electrical Appliance Group, Zhejiang China Commodity City Company, and Ctrip Travel Network, spoke. They believed that the national tax reduction and fee reduction policies are both practical and effective, and the entire economy and enterprise production and operations continue to recover, but the sharp rise in international commodity prices has put great pressure on enterprises to increase costs.

Since the end of last year, the price increase in the paper industry has been affecting the nerves of many companies. In April, the household paper industry once again ushered in a price increase.

"Recently, due to the continuous increase in raw material prices, the company's production costs and operating costs have continued to increase. In order to ensure that the company continues to provide stable, high-quality products and services to customers, our company plans to increase the price of Zhongshun Jierou's household paper products to 4 Significant adjustments will begin on March 1st..." Last month, Zhongshun Jierou's price adjustment letter attracted widespread attention.

What has attracted more market attention is that within a week, leading domestic paper companies such as Vinda Paper, Hengan Group, and Jinhongye Paper (the parent company of "Qingfeng") have issued "price increase letters", announcing that starting from April 1 Starting from raising the prices of some products.

"The paper giants announced price increases in unison, which was rare before. At the end of last year, household paper also went through a round of price increases, but the leading paper companies did not follow up." An industry analyst told 21st Century Business Herald the reporter said.

As for the reason for this round of household paper price increases, several leading paper companies have pointed their finger at the soaring price of upstream raw material pulp.

Heng'an Group's price adjustment notice shows that "due to the continued sharp rise in the cost of imported wood pulp and bulk materials, starting from April 1, the promotional supply prices of the company's related tissue products will gradually increase by 10%-20%."

A copy of 3 The "Qingfeng" brand paper product price increase notice at the beginning of the month also stated that pulp prices have been rising recently, and now the softwood pulp has reached 7,400 yuan/ton, the broadleaf pulp has reached 6,400 yuan/ton, and the futures price is even higher. Pulp prices this year are expected to exceed the peak of 8,900 yuan/ton in 2017.

Xu Yinan, chairman of Guangdong Bilon Household Paper Co., Ltd., said that the most important raw material for household paper is wood pulp, which accounts for about 60% of the total costs of papermaking companies. Since the third quarter of 2020, wood pulp prices have continued to rise, and now have nearly doubled.

Chen Zhu, secretary-general of the Guangdong Paper Industry Association, told the 21st Century Business Herald reporter, "Since the beginning of this year, pulp futures prices have continued to rise, which has led to a sharp increase in spot prices. The excessive rise in upstream raw materials has caused a negative impact on the production costs of paper companies. A lot of pressure."

The terminal market impact is limited

Zhongshun Jierou, Vinda Paper, Heng'an Group, and Jinhongye Paper are all leading paper manufacturers, and these companies occupy the vast majority of domestic household paper. What will be the impact on the terminal retail market when leading paper companies announce price increases? A reporter from the 21st Century Business Herald found that the current price increase has not yet spread to the terminal retail market.

html On April 10, a reporter from the 21st Century Business Herald found in a supermarket in Guangzhou that many brands of toilet paper, tissue paper, etc. were placed on the shelves, all of which were in sufficient supply.

Regarding the price increase of household paper, supermarket sales staff said that they "have not received any price increase notice." Not only has there been no price increase, products of brands such as "Vinda" and "Qingfeng" are still on sale.

Ms. Luo, who lives in Guangzhou, said, "I don't feel the price increase now. Some tissues are still on sale, and I feel that the price is lower than usual."

Industry insiders said that discount promotions are a regular sales of household paper products. Strategy. Although many leading paper companies have issued "price increase letters", the retail price may not necessarily be raised according to the increase. Sellers will use hidden price increases such as reducing discounts to make it inconspicuous to consumers.

Chen Zhu analyzed to the 21st Century Business Herald reporter that the sharp rise in upstream raw material prices has repeatedly squeezed the profits of paper companies, but it will take some time to be transmitted to the terminal retail market. "Paper companies increase product prices in ton units, but when divided into daily purchases, the impact is very limited."

At the end of last year, under cost pressure, some small and medium-sized paper companies also tried Prices were raised, but during the same period, leading paper companies relied on a large amount of low-price raw materials in stock and did not follow up. This resulted in small and medium-sized paper companies unable to sell their products and shipments dropped significantly.

For a long time, the household paper industry has been a red ocean market with obvious overcapacity. This has also made industry competition very fierce and product profit margins are generally low. As the price of raw materials increases, the profits of household paper companies have become lower. Even if some paper companies raise prices, their profits are not high. Chen Zhu analyzed that with leading paper companies taking the lead in raising prices, small and medium-sized paper companies are now faced with the question of whether to follow up on price increases. On the one hand, due to high costs and on the other hand, the pressure of market competition, small and medium-sized paper companies are generally in a dilemma.

An industry analyst pointed out that judging from the current trend, the rise in pulp prices may continue for some time. If downstream papermaking companies cannot pass on costs, performance and profits will face a greater impact.

Paper companies are actively deploying high-end markets

Faced with operating pressures, downstream paper companies are also actively responding. The expansion of high-end paper products and personal care categories has brought new business opportunities to companies, and some companies are also actively exploring new channels such as overseas markets.

html On March 19, Hengan International released its 2020 annual results announcement stating that as of December 31, 2020, the group's operating income was 22.374 billion yuan, a year-on-year decrease of 0.53%; the attributable net profit was 4.595 billion yuan, a year-on-year increase of 17.6%.

Regarding the improvement in profits, Hengan International said that in addition to external factors such as increased demand for personal and home care products due to the epidemic, low wood pulp prices during the year, which promoted the gross profit growth of the paper towel business, high-profit sanitary napkins revenue increased significantly, and high-end sanitary napkin revenue increased significantly. The rapid increase in the market penetration rate of towels during the year is an important reason for the company's profit growth.

Previously, Li Weiliang, executive director and financial director of Hengan International, said in an online meeting that the group will continue to develop high-end products. Li Weiliang pointed out that in the future, the group will expand its channels, such as expanding its sanitary napkin business to women's health care, expanding its mask business to medical product lines, and plans to promote its products to Southeast Asia.

Vinda International also mentioned before that with the improvement of living standards and the improvement of consumption habits brought about by the epidemic, more diversified, professional and high-end household paper will penetrate into people's daily lives. It is expected that the company's sales proportion of high-end household paper will continue to increase. At the same time, the increase in the proportion of high-end household paper will help the income and gross profit margin of household paper. The person in charge of

Vinda International previously stated that looking forward to the future, the group will continue to focus on high-end product strategies, promote innovation and expand market share, and face difficulties. "The epidemic has increased public hygiene awareness and stimulated demand for sanitary products. At the same time, consumer demand for products has increased, and we expect the trend of pursuing high-end product portfolios to rise."

faces foreign anti-epidemic and personal cleaning products Due to the strong demand, some small and medium-sized papermaking companies have also sensed the market opportunities behind them, and have successfully opened up overseas markets by accelerating the research and development of related products.

Guangdong Bilon is one of the representatives. Xu Yinan introduced that last year, Bilen launched functional antibacterial and antibacterial tissue products.Due to the impact of the epidemic, consumer demand for health products has greatly increased, and the antibacterial and antibacterial tissues launched by Bilen have also achieved good results. In 2021, Biren will continue to focus on overseas markets.

For more content, please download 21 Finance APP

author | Yu Changhuan

editor | Zhou Shangqi

editor | Jin Shan

Due to the impact of the epidemic, consumer demand for health products has greatly increased, and the antibacterial and antibacterial tissues launched by Bilen have also achieved good results. In 2021, Biren will continue to focus on overseas markets.

For more content, please download 21 Finance APP

author | Yu Changhuan

editor | Zhou Shangqi

editor | Jin Shan