Core Viewpoint - The article discusses the impact of global supply shocks and changes in supply-demand dynamics in the European and American markets on domestic pulp prices in China, highlighting the long-term benefits for integrated pulp and paper manufacturers with upstream forest resources and green energy capabilities [1]. Group 1: Domestic Pulp Price Dynamics - Domestic pulp prices are closely linked to overseas markets, with global supply and demand primarily driving domestic prices. The demand for commodity pulp accounts for less than 40% of total wood pulp demand, with softwood pulp making up 35% and hardwood pulp 55%, which has seen rapid growth in recent years [2]. - China has become the largest buyer in the global market, increasing its market share from 12% to 44% over the past 20 years, giving it significant bargaining power. The fluctuation in domestic wood pulp demand and the rising self-sufficiency in pulp production also impact global commodity pulp demand [2]. Group 2: Supply Chain and Price Influences - Since 2017, an average of 2 million tons of pulp capacity has been permanently shut down each year, with supply reductions expected to exceed 2 million tons annually post-2020 due to market factors, strikes, equipment failures, and natural disasters. The rising costs of wood pulp in Europe and America have widened the price gap between softwood and hardwood pulp [3]. - The structural changes in pulp usage are expected to lower long-term average costs, with hardwood pulp demand increasing by 10 percentage points to 74%, and the use of non-wood pulp materials like bamboo pulp rising to 12.1% in domestic life paper production [3]. Group 3: Cost Structure and Future Trends - The cost curve for pulp production is primarily determined by wood costs, with eucalyptus becoming more prevalent and driving down hardwood costs. However, domestic real estate demand is suppressing wood prices, which may lead to a tightening supply-demand balance and potential price increases [4]. - Logistics costs account for 10-20% of total costs, and leading pulp manufacturers can optimize costs through strategic location choices. Energy costs represent 15-20%, with top manufacturers able to sell surplus electricity [4].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The pulp market lacks clear guidance, and pulp prices are expected to fluctuate within a range. Due to the ongoing deadlock in the supply - demand fundamentals, high port inventories, abundant spot market supplies, no substantial improvement in downstream demand, and low operating rates, the price of the pulp 2511 contract is predicted to fluctuate between 5110 - 5320 this week [5]. 3. Summary According to the Table of Contents 3.1 Pulp Price Analysis - **Spot Pulp Price Review**: Coniferous pulp prices remained relatively stable, while broad - leaf pulp prices declined. Among them, broad - leaf pulp such as Jin Yu, Xiao Niao, and A Er Pai decreased by 0.97%, 1.22%, and 1.22% respectively. Chemical mechanical pulp remained stable, natural pulp declined, and sugarcane pulp increased. The chemical mechanical pulp Kun He in Shandong was quoted at 3700 yuan/ton, unchanged from the previous week; the natural pulp Jin Xing was quoted at 4900 yuan/ton, down 2.0%; the sugarcane pulp in South China was quoted at 4000 yuan/ton, up 2.56% [11][13]. - **Pulp Futures Review**: The pulp futures contract SP2511 oscillated horizontally within a 100 - point range last week, closing at 5192 yuan/ton on the weekly line, with no change from the previous week. The weighted trading volume was 122.0 million lots, a decrease of 49.9 million lots, and the weighted open interest was 29.3 million lots, a decrease of 1.2 million lots [14]. - **Pulp Futures - Spot Basis Comparison**: The contango of the futures - spot basis widened slightly. The basis contango between coniferous wood pulp and the closing price of the futures main contract was 688 yuan/ton, 24 yuan/ton wider than the previous week [18]. - **Log Futures Review**: The main log futures contract 2509 showed a trend of rising first and then falling last week, closing at 830.5 yuan/cubic meter on the weekly line, up 1.1% from the previous week. The weighted trading volume was 12.2 million lots, a decrease of 0.879 million lots, and the weighted open interest was 3.15 million lots, an increase of 0.43 million lots [19]. 3.2 Pulp Supply - Side Analysis - **Weekly Pulp Production**: Last week's pulp production was 47.9 tons, a slight increase of 0.1 tons (0.21%) compared to the previous week. It is expected that the domestic production of broad - leaf pulp will be about 20.7 tons and chemical mechanical pulp will be about 20.5 tons [21]. - **Weekly Capacity Utilization of Broad - leaf and Chemical Mechanical Pulp**: The capacity utilization rate of domestic broad - leaf pulp was 76.3%, a decrease of 0.8% compared to the previous week; the capacity utilization rate of domestic chemical mechanical pulp was 86.7%, a decrease of 1.2% [26]. - **Monthly Pulp Production**: In July 2025, domestic pulp production was 212.4 tons, a 2.51% increase compared to the previous month [27]. - **Monthly Capacity Utilization of Chemical Mechanical and Broad - leaf Pulp**: In July 2025, the production of domestic chemical mechanical pulp was 89.6 tons, a 4.8% increase compared to the previous month, with a capacity utilization rate of 84.2%, a decrease of 0.8%. The production of broad - leaf pulp was 91.7 tons, a 2.92% increase compared to the previous month, with a capacity utilization rate of 83.0%, an increase of 2.4% [31]. - **Monthly Production Margin of Broad - leaf and Chemical Mechanical Pulp**: In July 2025, the production margin of broad - leaf pulp was 512.7 yuan/ton, a 3.87% increase compared to the previous month. The production margin of chemical mechanical pulp was - 307.9 yuan/ton, with a loss reduction of 69 yuan/ton [35]. - **Pulp Import Volume**: In June 2025, the pulp import volume was 3.0306 million tons, a 0.48% increase compared to the previous month and a 16.12% increase compared to the same period last year. From January to June 2025, the cumulative import volume was 18.5777 million tons, a 4.2% increase compared to the same period last year [37]. 3.3 Pulp Demand - Side Analysis - **Downstream Tissue Paper Market**: Last week, domestic tissue paper production was 27.86 tons, a decrease of 0.04 tons (0.14%) compared to the previous week. The capacity utilization rate was 63.1%, a decrease of 0.1% [41]. - **Downstream Cultural Paper Market**: Last week, copperplate paper production was 7.8 tons, a decrease of 0.1 tons (1.28%) compared to the previous week, with a capacity utilization rate of 56.6%, a decrease of 1.3%. Offset paper production was 21 tons, an increase of 1.2 tons (6.06%) compared to the previous week, with a capacity utilization rate of 57.0%, an increase of 1.6% [44]. - **Downstream Packaging Paper Market**: Last week, white cardboard production was 30.7 tons, an increase of 0.9 tons (3.02%) compared to the previous week, with a capacity utilization rate of 70.74%, a decrease of 1.94%. Corrugated paper production was 46.17 tons, a decrease of 0.91 tons (1.93%) compared to the previous week, with a capacity utilization rate of 61.9%, a decrease of 1.22%. Boxboard paper production was 61.91 tons, an increase of 0.92 tons (1.51%) compared to the previous week, with a capacity utilization rate of 68.68%, an increase of 1.32% [47][50]. - **Downstream Base Paper Spot Price Analysis**: Tissue paper prices remained stable, while cultural paper prices declined. Whiteboard paper and white cardboard prices were basically stable. Corrugated paper prices increased slightly, and boxboard paper prices remained stable [51][53][56]. - **Downstream Base Paper Capacity Utilization**: In July 2025, the capacity utilization rate of domestic tissue paper was 65.33%, an increase of 2.33% compared to the previous month. The capacity utilization rate of white cardboard was 74.59%, an increase of 1.29% compared to the previous month. The capacity utilization rate of offset paper was 55.96%, a decrease of 0.41% compared to the previous month. The capacity utilization rate of copperplate paper was 57.6%, an increase of 1.25% compared to the previous month [58][60]. - **Domestic Pulp Actual Consumption**: In July 2025, the predicted domestic demand was 3.23 million tons, the predicted consumption was 3.215 million tons, and the actual pulp consumption was 3.321 million tons, an increase of 3.94% compared to the previous month and 3.3% compared to the same period last year [64]. 3.4 Pulp Inventory - Side Analysis - **Pulp Port Inventory**: Currently, the overall port inventory is in a destocking trend. The inventory of mainstream port samples is 2.048 million tons, a decrease of 57,000 tons (2.71%) compared to the previous week. Among them, Qingdao Port's inventory is 1.385 million tons, a decrease of 20,000 tons (1.42%); Changshu Port's inventory is 485,000 tons, a decrease of 29,000 tons (5.64%); Tianjin Port's inventory is 60,000 tons, a decrease of 2,000 tons (3.23%) [67][70]. - **Futures Pulp Warehouse Receipts**: Currently, pulp futures warehouse receipts are 244,200 tons, an increase of 1,679 tons (0.69%) compared to the previous week. The total warehouse receipts in Shandong are 225,000 tons, an increase of 1,679 tons (0.75%) [71].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][12]. Core Insights - The company is investing approximately 11 billion RMB in an integrated bamboo pulp and paper project in Sichuan, aiming for a production capacity of 800,000 tons of bamboo pulp and 1.2 million tons of high-performance paper materials annually. The first phase is expected to be operational within three years [2]. - The trend of replacing traditional plastic packaging with pulp/bamboo pulp is gaining momentum, supported by environmental policies and technological advancements in bamboo pulp production, which is expected to significantly expand the market size [2]. - The company has a substantial inventory of pulp, which is anticipated to improve profit margins as pulp prices stabilize and recover [3]. - The full operation of the company's bases in Guangxi and Hubei is expected to enhance its integrated supply chain, significantly increase production capacity, and improve market share [4]. Summary by Sections Company Overview - The company is focusing on an integrated bamboo pulp and paper project with a total investment of about 11 billion RMB, targeting a production capacity of 800,000 tons of bamboo pulp and 1.2 million tons of high-performance paper materials annually [2]. Market Analysis - The shift towards pulp/bamboo pulp as an eco-friendly alternative to plastic is becoming more pronounced, with increasing demand in sectors such as food service and healthcare, leading to a broader application of pulp products [2]. Financial Projections - Revenue forecasts for 2025-2027 are 12.91 billion RMB, 15.26 billion RMB, and 17.74 billion RMB, representing year-on-year growth rates of 25.70%, 18.14%, and 16.25% respectively. Net profit is projected to reach 1.21 billion RMB, 1.46 billion RMB, and 1.77 billion RMB during the same period, with corresponding growth rates of 20.53%, 20.99%, and 20.74% [5][10]. - The expected earnings per share (EPS) for 2025-2027 are 1.71 RMB, 2.07 RMB, and 2.50 RMB, with current price-to-earnings (P/E) ratios of 10, 8, and 7 respectively [5][10]. Production Capacity and Integration - The company has successfully launched production lines in Hubei and Guangxi, with significant output already achieved. Future expansions are planned to further enhance production capabilities [4]. - The company is also developing 300,000 acres of its own forest land and has access to an additional 1 million acres of state-owned forest land to ensure a stable supply of raw materials [4].

Bamboo Industry in Chishui City - Chishui City, known as one of the first ten bamboo towns in China, has 1.328 million acres of bamboo forests, creating a green ecological barrier and a thriving bamboo industry chain [1] - The bamboo industry in Chishui has seen continuous growth due to the "replace plastic with bamboo" policy, attracting high-quality enterprises and leading to the establishment of companies like Guizhou Xingchangmei Bamboo Industry Development Co., which produces bamboo chopsticks and containers [5][10] - The bamboo industry is transitioning towards deep processing and high value-added products, including bamboo pulp paper, eco-friendly tableware, and biomass materials [7] Economic Impact - The bamboo industry has provided stable employment opportunities for local residents, allowing them to earn a living without migrating [8] - The development of the bamboo industry has been recognized by the China Forestry Industry Federation, awarding Chishui the title of "Bamboo Capital of China" in 2023 [10] Tea Industry in Meitan County - Meitan County, a major tea-producing area in Guizhou, has over 300,000 tea farmers benefiting from the tea industry [12] - The tea gardens in Meitan have expanded to 600,000 acres, contributing significantly to rural revitalization [13] - Guizhou Yangchun Baiyue Tea Co., a key agricultural enterprise, connects over 20,000 acres of tea gardens and supports more than 30,000 tea farmers through a cooperative model [16] Agricultural Development in Sanjia Village - Sanjia Village, led by a young village party secretary, has initiated agricultural projects, including the cultivation of millet on over 100 acres of land [15][18] - The village has successfully sold over 30,000 pounds of millet through online sales, generating over 400,000 yuan in revenue [20] - Efforts are being made to create a complete industrial chain that integrates agricultural production, processing, and sales [20]

1. Report Industry Investment Rating - No relevant content provided. 2. Core Viewpoints of the Report - High inventory pressure on pulp ports persists, with limited improvement in downstream demand. Paper mills mainly purchase raw materials based on rigid demand, and the operating rate remains low. It is expected that the price of the pulp 2509 contract will fluctuate in the range of 4960 - 5220 this week [4]. 3. Summary According to the Table of Contents 3.1 Pulp Price Analysis - **Spot Pulp Price Review**: Last week, the market prices of spot pulp decreased slightly. In Shandong, the prices of coniferous pulp such as Silver Star, Cariboo, and Northern Wood dropped by 50 yuan/ton, with declines of -0.84%, -0.83%, and -0.80% respectively. The prices of broadleaf pulp like Goldfish, Birdie, and Alpine decreased by 20 - 30 yuan/ton, with declines of -0.49% - -0.74%. The prices of chemimechanical pulp, natural pulp, and non-wood pulp remained stable [9][13]. - **Pulp Futures Market Review**: Last week, the pulp futures contract SP2509 oscillated within a 120-point range, closing at 5068 yuan/ton, down 28 yuan/ton (-0.55%) for the week. The weighted trading volume was 1.525 million lots, a decrease of 912,000 lots from the previous week, and the weighted open interest was 325,000 lots, an increase of 27,500 lots [14]. - **Pulp Futures-Spot Basis Comparison**: Due to the larger decline in the spot price of coniferous wood pulp than that of pulp futures, the basis discount continued to shrink. The basis discount between coniferous wood pulp and the closing price of the futures main contract was 832 yuan/ton, a reduction of 22 yuan/ton from the previous week [18]. - **Log Futures Market Review**: Last week, the main log futures contract 2509 oscillated in a range, closing at 795.0 yuan/cubic meter, up 4.0 yuan/cubic meter (+0.51%) from the previous week. The weighted trading volume was 102,000 lots, a decrease of 34,600 lots, and the weighted open interest was 27,600 lots, a decrease of 8,700 lots [20]. 3.2 Pulp Supply - Side Analysis - **Weekly Pulp Production**: Last week, pulp production was 474,000 tons, a decrease of 8,800 tons (-1.82%) from the previous week. Among them, broadleaf pulp production was 205,000 tons, and chemimechanical pulp production was 201,000 tons. It is expected that this week's domestic broadleaf pulp production will be about 206,000 tons, and chemimechanical pulp production will be about 200,000 tons [4][22]. - **Capacity Utilization of Broadleaf Pulp and Chemimechanical Pulp**: Last week, the capacity utilization rate of domestic broadleaf pulp was 76.6%, a decrease of 0.5% from the previous week, and that of domestic chemimechanical pulp was 84.3%, a decrease of 0.8% [27]. - **Monthly Pulp Production**: In June 2025, domestic pulp production was 2.072 million tons, a decrease of 72,000 tons (-3.36%) from the previous month. Among them, wood pulp production was 1.746 million tons, a decrease of 63,000 tons (-7.69%), and non - wood pulp production was 326,000 tons, a decrease of 9,000 tons (-2.69%) [28]. - **Monthly Capacity Utilization of Chemimechanical Pulp and Broadleaf Pulp**: In June 2025, domestic chemimechanical pulp production was 855,000 tons, a decrease of 21,000 tons (-2.4%), with a capacity utilization rate of 85.0%, an increase of 0.8%. Broadleaf pulp production was 891,000 tons, a decrease of 42,000 tons (-4.5%), and the capacity utilization rate was 80.6%, a decrease of 1.1% [32]. - **Monthly Production Profit of Broadleaf Pulp and Chemimechanical Pulp**: In June 2025, the production profit of broadleaf pulp was 493.6 yuan/ton, a decrease of 167.3 yuan/ton (-25.31%) from the previous month and a decrease of 1,503.03 yuan/ton (-75.28%) from the same period last year. The production profit of chemimechanical pulp was -376.9 yuan/ton, a reduction of losses by 41.1 yuan/ton [36]. - **Pulp Imports**: In May 2025, pulp imports were 3.016 million tons, an increase of 123,200 tons (4.26%) from the previous month and an increase of 196,000 tons (6.95%) from the same period last year. From January to May 2025, the cumulative imports were 15.55 million tons, an increase of 320,000 tons (2.1%) from the same period last year [38]. 3.3 Pulp Demand - Side Analysis - **Downstream Tissue Paper Market**: Last week, domestic tissue paper production was 281,000 tons, an increase of 1,000 tons (0.36%) from the previous week, and the capacity utilization rate was 63.5%, an increase of 0.1% [40]. - **Downstream Cultural Paper Market**: Last week, copperplate paper production was 77,000 tons, an increase of 1,000 tons (1.32%), and the capacity utilization rate was 56.9%, an increase of 0.6%. Offset paper production was 203,000 tons, a decrease of 1,000 tons (-0.49%), and the capacity utilization rate was 57.0%, a decrease of 0.2% [44]. - **Downstream Packaging Paper Market**: In the packaging paper market last week, the production of white cardboard was 313,000 tons, an increase of 10,000 tons (3.3%), and the capacity utilization rate was 76.34%, an increase of 2.44%. The production of white board paper was 194,000 tons, a decrease of 1,000 tons (-0.51%), and the capacity utilization rate was 68.79%, a decrease of 0.36%. The production of corrugated paper was 472,600 tons, a decrease of 6,200 tons (-1.29%), and the capacity utilization rate was 63.36%, an increase of 0.01%. The production of boxboard paper was 613,500 tons, an increase of 8,200 tons (1.29%), and the capacity utilization rate was 67.75%, an increase of 1.49% [47][50]. - **Downstream Base Paper Spot Price Analysis**: Last week, in the tissue paper market, the price of Shandong wood pulp large - roll base paper decreased by 50 yuan/ton (-0.84%), while the prices of Sichuan bamboo pulp and Guangxi sugarcane pulp large - roll base paper remained stable. In the cultural paper market, the price of Shandong 70g offset paper decreased by 50 yuan/ton (-0.99%), and the price of double - copper paper remained stable. The prices of white board paper and white cardboard remained stable, while the price of corrugated paper decreased slightly, and the price of boxboard paper remained stable [51][55][57]. - **Downstream Base Paper Capacity Utilization**: In June 2025, tissue paper production was 1.193 million tons, a decrease of 29,000 tons (-2.37%) from the previous month and an increase of 101,000 tons (9.25%) from the same period last year. The capacity utilization rate was 63.0%, a decrease of 1.5% from the previous month and a decrease of 1.5% from the same period last year. White cardboard production was 1.29 million tons, an increase of 10,000 tons (0.78%) from the previous month and a decrease of 42,000 tons (-3.15%) from the same period last year. The capacity utilization rate was 73.3%, an increase of 2.58% from the previous month and a decrease of 4.8% from the same period last year. Offset paper production was 862,000 tons, a decrease of 27,000 tons (-3.04%) from the previous month and a decrease of 38,000 tons (-4.22%) from the same period last year. The capacity utilization rate was 56.37%, an increase of 0.1% from the previous month and a decrease of 7.23% from the same period last year. Copperplate paper production was 327,000 tons, a decrease of 10,000 tons (-2.97%) from the previous month and a decrease of 50,000 tons (-13.26%) from the same period last year. The capacity utilization rate was 56.35%, an increase of 0.15% from the previous month and a decrease of 6.85% from the same period last year. The actual domestic pulp consumption in June 2025 was 3.195 million tons, a decrease of 52,000 tons (-1.6%) from the previous month and an increase of 4,000 tons (0.13%) from the same period last year [59][64][67]. 3.4 Pulp Inventory - Side Analysis - **Pulp Port Inventory**: Currently, the overall port inventory of pulp in China shows a trend of inventory accumulation. The inventory of mainstream port samples is 2.213 million tons, an increase of 50,000 tons (2.31%) from the previous week. Among them, the inventory of Qingdao Port is 1.378 million tons, an increase of 26,000 tons (1.92%), the inventory of Changshu Port is 598,000 tons, an increase of 52,000 tons (9.52%), and the inventory of Tianjin Port is 62,000 tons, a decrease of 3,000 tons (-3.39%) [68][70]. - **Futures Pulp Warehouse Receipts**: Last week, pulp futures warehouse receipts were 242,800 tons, a decrease of 5,996 tons (-2.41%) from the previous week. The total warehouse receipts in Shandong were 221,900 tons, a decrease of 5,699 tons (-2.5%) [72].

Investment Rating - The industry investment rating is "Positive" [2] Core Viewpoints - The report emphasizes the growth certainty amidst fluctuations in the light industry manufacturing sector, particularly focusing on the export chain narrative becoming clearer [2] - The report highlights the stability in paper prices and the potential recovery in the pulp and paper sector, with specific companies recommended for investment [2][3] - The report discusses the impact of new tariffs on exports from Vietnam to the U.S. and suggests that this may lead to a recovery in order placements [3] - The report notes the challenges in the new tobacco sector due to increased compliance scrutiny in the U.S. and suggests potential beneficiaries of this trend [4] - The report outlines the performance of various sectors including e-commerce, electrical lighting, and home furnishings, indicating growth opportunities and strategic expansions [7][9][10] Summary by Sections Pulp and Paper - Pulp prices are stabilizing with South American bleached eucalyptus pulp prices at $500-510 per ton, and domestic pulp mills are facing rising costs [2] - Companies like Sun Paper and Xianhe are recommended for their integrated pulp and paper operations and profitability improvements [2] Exports - The recent tariff agreement between the U.S. and Vietnam is expected to enhance order placements and stabilize the export chain [3] - Companies with strong global layouts and those facing short-term performance pressures are highlighted for potential investment [3] New Tobacco - The U.S. FDA is increasing compliance checks, leading to a significant drop in e-cigarette shipments, which may benefit compliant companies [4] E-commerce - "Jiao Ge Peng You" reported impressive sales during the 618 shopping festival, indicating a successful technology-driven retail strategy [7] Electrical Lighting & Smart Home - Bull Group's international strategy is yielding results with significant sales in Germany, while other companies are exploring high-end markets [9] Home Furnishings - The launch of new product systems by "Bei Wo" and the anticipated restart of national subsidies are expected to boost consumer confidence in home furnishings [10] Consumer Products - The report notes a divergence in growth trends within the personal care sector, with certain brands showing strong performance [11] Gold and Jewelry - The demand for boutique gold jewelry is strengthening, with stable gold prices expected to support overall industry recovery [12][13] Two-Wheel Vehicles - Tao Tao Vehicle's strong profit forecast indicates growth potential in the electric vehicle sector [14] Cross-Border E-commerce - Companies like Xiao Shang Pin Cheng and Ji Hong are expected to perform well as tariff uncertainties diminish [15] Packaging - Yongxin and Yutong Technology are projected to maintain steady growth, with a focus on functional and differentiated materials [16]

Core Viewpoint - Xianhe Co., Ltd. plans to invest 11 billion yuan to establish an integrated high-performance paper base new material project using bamboo pulp, aiming to enhance production capacity and reduce reliance on imported raw materials [1][2]. Investment Details - The investment will be executed in two phases, with each phase costing approximately 5.5 billion yuan, leading to a total investment of 11 billion yuan [1]. - Upon completion, the project is expected to add an annual production capacity of 800,000 tons of bamboo pulp and 1.2 million tons of high-performance paper base materials, generating an estimated annual output value of 5.15 billion yuan and tax revenue of about 450 million yuan, while creating around 2,000 jobs [1]. Strategic Rationale - The investment aims to extend the industrial chain, achieve raw material self-sufficiency, and control costs, addressing the current dependency on imported wood pulp, which poses risks to cost management and supply chain stability [2][5]. - In 2024, the daily consumer series, which includes specialty paper, is projected to account for 47.05% of total revenue, highlighting the critical need for stable raw material supply [2]. Financial Implications - The total investment of 11 billion yuan represents 136% of Xianhe's net assets for 2024, with a current debt-to-asset ratio of 65.11%, indicating potential financial strain from large-scale financing [7]. - The company plans to finance the first phase of 5.5 billion yuan in batches, adjusting based on future demand and market conditions [7]. Market Conditions - The bamboo pulp production capacity utilization rate is expected to be only 85% in 2024, raising concerns about the feasibility of absorbing the new production capacity without facing impairment risks [7]. - Xianhe Co. faces competitive pressures from peers like Qingshan Paper Industry, which is also expanding its bamboo pulp capacity, potentially leading to increased price competition in the industry [7][8].

Group 1: General Information - Report Title: Pulp Daily Report [1] - Date: July 3, 2025 [2] - Research Team: Energy and Chemical Research Team [4] Group 2: Market Review and Operation Suggestions Market Review - SP2509 contract: Pre-settlement price was 5044 yuan/ton, closing price was 5072 yuan/ton, up 0.56% [7] - SP2601 contract: Pre-settlement price was 5230 yuan/ton, closing price was 5284 yuan/ton, up 1.03% [7] - SP2605 contract: Pre-settlement price was 5178 yuan/ton, closing price was 5234 yuan/ton, up 1.08% [7] - Shandong wood pulp market: Coniferous pulp intended transaction price range was 5220 - 6750 yuan/ton, with the low-end price stable compared to the previous trading day. Shandong Yinxing was quoted at 6100 yuan/ton [7] Operation Suggestions - Supply side: In May, the shipment volume of coniferous pulp from 20 major pulp-producing countries decreased by 8.2% year-on-year, and the cumulative decrease from January to April was 0.6% year-on-year. European port wood pulp inventory in May increased by 13.3% month-on-month and 22% year-on-year. China's pulp imports in May were 3.02 million tons, up 4.3% month-on-month and 6.9% year-on-year. As of June 26, 2025, the weekly pulp inventory in major regions and ports decreased by 3.49% month-on-month [8] - Demand side: Downstream paper mills' raw material procurement mentality remained cautious, mainly replenishing inventory at low levels for rigid demand [8] - Market outlook: The current port de-stocking speed is slow, the supply of imported wood pulp market is relatively loose, and with the expectation of new domestic production capacity, the improvement of the pulp fundamentals is limited, and it will operate in a low-range oscillation [8] Group 3: Industry News - On July 2, Xianhe Co., Ltd. announced an overseas investment. On June 30, 2025, the company signed an investment agreement with the People's Government of Hejiang County, Sichuan Province, for a bamboo pulp and paper integrated high-performance paper-based new material project. The total investment is expected to be about 11 billion yuan to build an 800,000-ton bamboo pulp and 1.2 million-ton high-performance paper-based new material production line and related supporting facilities. The project is planned in stages. The first phase will invest about 5.5 billion yuan, cover an area of about 2000 mu, and build a 400,000-ton bamboo pulp and 600,000-ton high-performance paper-based new material production line and related supporting facilities. The second phase will invest about 5.5 billion yuan, cover an area of about 2000 mu, and build a 400,000-ton bamboo pulp and 600,000-ton high-performance paper-based new material production line, corresponding supporting projects, and a bamboo forest base [9] Group 4: Data Overview - The report provides multiple data charts, including import bleached softwood pulp spot price in Shandong, pulp futures price, pulp futures-spot price difference, needle-broadleaf price difference, inter-period price difference, warehouse receipt volume, domestic main port pulp inventory, European main port wood pulp inventory, white cardboard and whiteboard price and price difference, copperplate paper and offset paper price and price difference, and US dollar to RMB exchange rate [15][17][19][26][28][30]

Core Viewpoint - The bamboo industry in Sichuan is being positioned as a strategic resource to drive green development and transformation, with financial support from Industrial Bank Chengdu Branch facilitating this growth [1][3]. Group 1: Industry Development - The Sichuan bamboo industry has been integrated into the "10+3" modern agricultural system, with a goal to establish "China's Bamboo Capital" in Yibin City, focusing on a full industrial chain from bamboo cultivation to deep processing and carbon trading [3]. - The bamboo forest in Yibin, covering over 44 square kilometers, absorbs more than one million tons of CO2 annually, contributing to the city's dual carbon goals [3]. - The bamboo industry in Qingshen County is thriving, with over 1.08 million acres of bamboo forests and an annual output value exceeding 9 billion yuan, producing over 3,000 bamboo products [4][5]. Group 2: Financial Support and Impact - Industrial Bank Chengdu Branch provided 40 million yuan in credit support to Sichuan Tianzhu Bamboo Resource Development Co., enabling the company to enhance its bamboo pulp production capacity to 180,000 tons annually, benefiting over 1,000 local bamboo farmers [3][5]. - The bank also established a 55 million yuan commercial bill discounting facility for Sichuan Huanlong New Materials Co., ensuring timely cash flow for bamboo supply cooperatives and supporting rural revitalization efforts [5][7]. - By 2024, the comprehensive output value of the Sichuan bamboo industry is expected to exceed 100 billion yuan, with farmers' average income doubling compared to five years ago [7].

Core Insights - Fujian Industrial Holding Group has officially launched, integrating metallurgy, light textile, and electromechanical sectors, with total assets exceeding 150 billion yuan and over 50,000 employees, marking a significant shift in the competitive landscape of state-owned enterprises in Fujian [1][4] - The establishment of the group aims at dual objectives of upgrading traditional industries and fostering strategic emerging industries, achieving full industry chain control in key areas such as steel, tungsten, new energy, and paper [4] Group Structure and Leadership - The group was formed under the strategic deployment of the Fujian provincial government, focusing on a comprehensive approach rather than mere asset aggregation [4] - The leadership team, led by Yang Fang, features a mix of experienced professionals from various sectors, reflecting the dual mission of traditional industry breakthroughs and new industry advancements [4] Key Listed Companies - **Xiamen Tungsten**: Positioned as the core platform for the tungsten industry, holding 20% of global tungsten resources, the company is focusing on technology-driven solutions, including innovative tungsten wire production and breakthroughs in semiconductor materials [6][7] - **Xiamen Tungsten New Energy**: This company is innovating in the solid-state battery sector, significantly reducing costs and enhancing energy density through new material technologies [9] - **Furong Technology**: Known for its "super-elastic aluminum" used in foldable smartphones, the company has secured a significant market share with advanced processing techniques [11] - **Minguang Steel**: Undergoing a transformation with investments in smart steelmaking and product upgrades, the company aims to enhance efficiency and reduce environmental impact [13] - **Qingshan Paper**: Pioneering bamboo pulp technology, the company is focused on sustainability and aims to significantly increase its green product sales [15] Future Directions - Fujian Industrial Holding Group is planning to invest 5 billion yuan in key technologies over the next three years, aiming to establish a national-level intelligent manufacturing demonstration factory and enhance its capital operations [17] - The group is working towards creating an integrated industrial ecosystem that spans metals, non-metals, and new energy, potentially serving as a model for state-owned enterprise reform in eastern coastal provinces [17]