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High operating costs,the paper display rack industry profits increasingly small

yacai 2015-07-06 clicks Comments
      September is the traditional sales season should the paper market, but under cost pressure, making enterprises more small profit margins, paper prices oppressed situation is obvious. Worse, the routine two-year preferential tax policies in the industry this year halted.

According to Societe Generale Securities (601377) released data show that domestic coated paper prices fell for 5 weeks, international prices of coated paper 2 consecutive weekly decline significantly. Wrapping around 150 yuan per ton decline. Currently, due to the economic downturn in Europe and America, paper export situation is extremely severe, had in August and September is the paper's traditional sales season, but there is obviously sluggish market demand, coupled with the release of the first half of the domestic paper production capacity more paper price has been significantly suppressed.

Insiders said the one hand, the decline in the price of paper, the other is the upstream raw material prices continue to rise. Data show, paper pulp raw material prices have rebounded slightly in August, the high prices stabilized waste. This is tantamount to saying that paper companies currently "Passing" was repeatedly squeezed profit margins.

Another bad news for paper companies, the Chinese paper companies for preferential VAT screeching halt this year. It is understood that, in 2008, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice of renewable resources, the VAT policy" (the "Notice"). Accordance with the "notice" requirement, from January 1, 2009 are exempt from VAT cancellation policy, enterprises engaged in renewable resources must be paid in full by the VAT Regulations VAT, giving a two-year "refunded" incentives, who meet the conditions of the general taxpayer refund in 2009 70% 2010 50% rebate, 2011 no longer enjoy tax rebates.

In the case of repeated profit margins are squeezed, tax incentives have been some of the paper-making enterprises as the final straw, but now it seems, the last hope for this part of the business was also shattered. Industry experts pointed out that from the current situation, in the paper industry, only those with higher production boom paper types and have the upstream resources of the enterprise, anti-risk capability will be stronger, which is perhaps the way paper companies.
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