Pulp Prices Expected to Rebound in October; Paper Industry Sees Demand Recovery in Second Half, Driving Stock Gains

As the calendar moves into the second half of the year, the paper manufacturing industry is expected to gradually recover. YFY (1907-TW) expressed optimism about market demand in Vietnam and Taiwan, while China Paper (1905-TW) indicated that pulp prices may rebound in October. Rongcheng (1909-TW) also sees strong demand for industrial packaging paper in the second half, driving gains across the paper sector today.

YFY stated that demand in Vietnam's paper products market has been robust since the second quarter and is expected to continue into the second half. In Taiwan, export demand beyond traditional markets remains strong, leading the company to maintain a positive outlook for both Vietnam and Taiwan in the second half.

China Paper, responding to persistently high costs, has reduced production and is supplying the market from inventory, with plans to resume full capacity in October. However, the company believes that as the fourth quarter peak season approaches, pulp prices are likely to rebound starting in October.

Rongcheng noted that the second half marks the traditional peak season, with demand expected to rise due to Mid-Autumn Festival, China's National Day holiday, e-commerce shopping events, and overseas Christmas demand. The company also believes the Chinese market has emerged from its economic trough and remains cautiously optimistic about its second-half operations.

In stock performance, China Paper rose over 2%, YFY gained more than 1%, and Rongcheng posted a modest increase. Additionally, Cheng Loong (1904-TW) and Shihwa Paper (1903-TW) both saw gains exceeding 2%.