The impact of the hottest tax on domestic paper li

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The impact of the tax on domestic paper listed companies is limited

the U.S. Department of Commerce announced on March 30 that it would impose a temporary countervailing duty on coated paper products exported from China to the United States. It is understood that once the US Department of Commerce imposes this punitive tariff, it will cause certain export pressure on China's major coated paper manufacturers. But on the whole, this punitive tariff has little impact on listed companies

for domestic coated paper production enterprises and enterprises that export coated paper to the United States, the ruling result of the U.S. Department of commerce is undoubtedly bad news. In fact, Jindong Paper Co., Ltd., the leader of the domestic coated paper industry, has taken positive actions with major domestic coated paper manufacturers such as Marriott and Quanlin on December 3, 2006, and has taken measures such as hiring senior American lawyers to deal with the countervailing investigation

according to the data, China was an importer of coated paper before 2005, and it should first remove the remaining scrap in the machine room. However, after 2005, the domestic coated paper production capacity began to expand sharply, from a net importer to a net exporter. Chenming Paper's coated paper business did not start to have a large-scale investment until 2006

Lishixin, a paper industry researcher at Guosen Securities, said that the countervailing investigation in the United States mainly targeted domestic companies such as Jindong paper, and would not have a great impact on listed paper companies. Most of the listed paper companies are mainly engaged in the production of paper and cultural paper. Chenming Paper and the newly listed sun paper have a certain scale of coated paper business

Li Shixin further said that the gross profit margin of Chenming Paper coated paper is about 20%, and the production capacity of 700000 tons does not account for a large proportion of its annual production capacity of 3million tons of paper products. Moreover, a considerable part of Chenming Paper coated paper is also put into the domestic market. Most parts in the domestic market and exports are modified, which brings confidence to extruder enterprises. The processing profit rate of PP material is similar, but if all of them turn to the country and continue to develop more wall enclosure materials and internal market of products, it may be difficult to digest in the short term, but in the long run, it will reach a balance. Haoyun, Secretary of the board of directors of Chenming paper, said that Chenming has not yet analyzed how much pressure the ruling results may bring to the company's coated paper export business, but it is not expected to have a great impact on Chenming

reprinted from: Securities Times

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