Newsprint prices rose 9% Nanjing newspapers raised 2 cents collectively

From today (10th), the retail prices of 4 urban newspapers on the Nanjing market have collectively increased by 40%, and the reason for the price increase is "the price of newsprint has risen."

The price-raising newspapers were “Hyundai Express”, “Yangtze Evening News”, “Jinling Evening News” and “Nanjing Morning Post”. The original retail price was RMB 0.5. However, since last week, these newspapers have been published in unison because of the news. Paper prices, the newspaper from March 10th, the retail price adjusted to 0.7 yuan / copy" news; at the same time, the subscription price is also raised from 180 yuan per year to 252 yuan per year. Nanjing has also become the first country in the country where newspapers collectively raise prices.

Newsprint price rose 9% this year

Before the collective price increase of Nanjing Newspapers, the well-known “Southern Metropolis Daily” has also conducted intensive market research. Since November last year, the retail price of its Shenzhen market has been raised from RMB 1 to RMB 2 and it has become the highest in the country. Your city newspaper. For post-engagement feedback, its circulation in Shenzhen market has been slightly affected.

Behind the successive price increases of newspapers, it reflects the continuous soaring prices of newsprint this year. The price of newsprint has risen from RMB 4,850/ton at the end of 2007 to RMB 5,300/ton in March this year, an increase of 9%. The newsprint mainstream manufacturers Huatai shares and Chenming Paper related parties all said that there are plans to raise prices further.

Two major reasons for newsprint price increases

“The newsprint industry made two sharp price increases in February and March.” Chang Jun Securities analyst Liu Jun believes that two major reasons led to newsprint price surge: First, the news paper gross profit continued to decline, the existing part of the production capacity has been converted Second, due to the approaching of the Olympics, various newspapers and printing factories began to prepare raw material stocks to ensure normal printing during the Olympic Games. Under the influence of comprehensive factors, the price of newsprint began to increase.

Due to the sluggish sales of news paper in the past few years, and the favourable market for cultural paper, paper mills have switched to producing cultural papers. Last year, Yueyang Paper, Huatai, Jilin Chenming, Wuhan Chenming and Chenming Shouguang No. 5 Plant respectively converted 250,000 tons, 200,000 tons, 100,000 tons, 50,000 tons and 50,000 tons, totaling 650,000 tons.

The price of coated paper also increased month by month. Since last year, several magazines have increased retail prices. The prices of Caijing and Sanlian Life Weekly have been raised from RMB 10 and RMB 8 per copy to RMB 15 and RMB 10 respectively.

In addition, the country implements energy-saving and emission-reduction policies. The paper mills have purchased a large amount of environmental protection equipment and increased their expenditures; the growth rate of investment in fixed assets has slowed down in 2006, which is calculated according to the investment and construction period of the paper industry for about two years, and the new capacity of the paper mills this year. With some reductions, under the background of energy saving and emission reduction, shutting down small and medium capacity paper mills has caused an increase in industry gaps and tight supply and demand, and will maintain a stable rise in product prices over a longer period of time.

In the long run, the price of newsprint has entered a rising channel. Qin Yan, the first securities analyst, believes that the overall recovery of the industry has just begun, and it is expected to maintain steady growth for a longer period of time. Given that the current price of newspapers is much lower than its cost, price increases in the future will become a trend.