(Yicai Global) Oct. 17 -- Chinese paper companies raised paper prices again this month, following a trend that emerged in the fourth quarter of last year when companies increased the prices of multiple products, especially corrugated paper and cardboard packaging, China Securities Journal reported.
The sharp rises in paper prices have been driven by China's impending ban on the import of specific types of solid wastes and increasing environmental regulations which affect the supply side, analysts suggest.
The fourth quarter import quota for waste paper remains unclear at present, further boosting price increases. The industry also appears reluctant to release new large-scale production capacity in the short term due to environmental concerns, further tightening supply.
The average price of corrugated paper as of the end of last week was CNY5,713 (USD864.4) per ton, an annual increase of 84 percent. Prices for cardboard reached an average of CNY6,200 a ton, up 88 percent, data from TF Securities show.
Shandong Chenming Paper Holdings Ltd. [SHE:000488] and other leading enterprises in the industry have directly benefited from this round of price increases. Chenming achieved net profits of CNY2.65 billion (USD401 million) to 2.75 billion during the first nine months of the year, up 71 to 77 percent annually, of which third quarter profits rose 46 to 63 percent.