With almost zero imported waste paper cost and ever rising price of finished product, Muda will report super super profit, the only sailang stock for 2018
85% purchase is from FM, retailer only small portion. Fund managers are smart people since they are so used to the market and to purchase only at the lower cost possible hence the reason why most retailers lose money. Smart money are accumulating slowly and once go up kaddoom retailer cannot catch and start to buy at high price again.
The ban has been like an "earthquake" for countries dependent on China, said Mr Arnaud Brunet, head of the Bureau of International Recycling.
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Mr Brunet also warned that many alternate countries may not yet be up to the task of filling China's enormous shoes, since "processing capacity doesn't develop overnight." The ban risks causing a "catastrophic" environmental problem as backlogs of recyclable waste are instead incinerated or dumped in landfills with other refuse.
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"The Chinese decision forces us to ask ourselves whether we wouldn't be interested in making processing plants in Europe so as to export products rather than waste," he said.
ET Intelligence Group: Paper companies have reported double-digit earnings growth over the past two years. In addition, their balance sheets look lighter with reduced debt burden and improved leverage ratios. Yet, these changes do not seem to fully reflect in their stock valuations, which remain in single digits. However, the valuations may improve given the growth opportunity in the wake of rising paper prices due to shutdown of capacities in China.
China has stopped imports of several grades of waste paper as a part of campaign against foreign garbage, which has created shortage of raw material and impacted the paper production. Further capacities close to 3 lakh tonnes per annum are shut down due to lack of environmental compliance. As a result, packaging paper prices, for instance, have shot up by 40 per cent to over 5,500 yuan per tonne since August, according to Bloomberg data.
“This has led to paper suppliers from China and other countries, such as Indonesia, to either stop selling paper in India or sell at a higher price. We see a good momentum in the industry,” PS Patwari, CEO, Emami Paper MillsNSE 0.00 %, said, adding, “India, which did not export paper to China, has now started exporting
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“India, which did not export paper to China, has now started exporting
Even European manufacturer thinking of investing - making a new processing plant to make use of this opportunity leh....
they see this as a long term policy which will bring definite benefit for other (outside China) manufacturers...
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"The Chinese decision forces us to ask ourselves whether we wouldn't be interested in making processing plants in Europe so as to export products rather than waste," he said (Mr Brunet).
China is likely to see price rises for paper products this year on a shortage of raw materials and imported waste paper, according to Hong Kong-listed Nine Dragons, one of Asia’s largest packaging and paper producers.
THIS WEEK IN ASIA Get updates direct to your inbox E-mail * Enter your email By registering you agree to our T&Cs & Privacy Policy Cheung Yan, the company’s chairwoman and one of China’s richest women, said at a press conference in Hong Kong on Tuesday that the company was likely to raise product prices in 2018, pressured by increased costs in raw materials, whose supply has been hit by Beijing’s tighter controls on imported waste paper, an important source for manufacturing paper products.
“The government’s tightened control on imported recovered paper has resulted in significant volatility in both imported and domestic recovered paper prices,” said Guangdong-based Nine Dragons in an interim results filing to the Hong Kong stock exchange.
In the six months ended December 31, the company saw its net profit more than doubled to 4.33 billion yuan (US$690 million), up from the previous 1.91 billion yuan.
Separately, Vinda International Holdings, China’s third-largest tissue manufacturer, said last month that it had raised tissue product prices by 4 to 5 per cent since last October in response to rising pulp prices.
China’s tissue giant Vinda expects further industry consolidation as Beijing tightens environmental controls
US pulp prices have risen more than 35 per cent in the past year, contributing to the hike in toilet-paper costs among other factors, according to Bloomberg.
The toilet paper price hike has sparked panic buying in Taiwan over the weekend after suppliers told local supermarkets they would raise prices by 10 to 30 per cent from next month.
Raw materials accounted for around 48 per cent of the costs for toilet paper products, and almost all of the pulp was imported from abroad, said Taiwan’s Ministry of Economic Affairs.
Vinda has operations in Taiwan, but it is not immediately known the level of price increase they will put in place for their products on the island.
"The toilet paper price hike has sparked panic buying in Taiwan over the weekend after suppliers told local supermarkets they would raise prices by 10 to 30 per cent from next month".
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....and thats the easiest paper to manufacture! LOL
"The environment clean-up is and will be a key driver of the industrial consolidation," said Ms Cui, who expects to see greater concentration in steel, paper-making and pharmaceuticals. "With costs rising from wages, land and pollution curbs, China's manufacturers will have to invest and upgrade to survive. Those who survive will benefit."
Take Mr He Wenyong, manager of a mid-sized textile company that has supplied Walt Disney Co and its licence holders. Amid a forced switch to natural gas from coal in his industry, the company, Shenzhen Yabi Textiles, is benefiting from past investments and eating up the market share of smaller competitors that could not foot the bill.
Raider, don't give comments without doing proper analysis, Muda is in the Business of processing waste paper and waste paper price has crashed and at the same time finished product pricess are rising, Orna dont process waste paper.
China 16 large manufacturer of paper are forced to switch to gas from coal by end of 2018, which will increase their cost even further. This is the right time to enter Muda
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rojakmee
1,210 posts
Posted by rojakmee > 2018-04-27 07:42 | Report Abuse
https://theconversation.com/chinas-recycling-ban-throws-australia-into-a-very-messy-waste-crisis-95522