The advantages and disadvantages of RMB appreciation to the paper industry

　　1. Paper industry: The appreciation of RMB will reduce the production cost of enterprises in the industry. If only the impact of RMB appreciation on the cost of raw materials is considered, the cost of product sales in China’s paper industry in 2004 was 171.591 billion yuan, of which the foreign exchange for imported raw materials was nearly 5.3 billion US dollars, equivalent to 43.8 billion yuan. A 2% appreciation of the renminbi can reduce costs. 0.51%, gross profit margin increased by 3.01%, total profit increased by 8.79%.

　　2. Pulp and waste paper: my country is an important net importer of pulp and waste paper in the world. By 2003, paper and paper products had become my country's third largest foreign exchange commodity after petroleum and steel. The appreciation of the renminbi will make it cheaper for domestic paper companies to import important raw materials such as pulp and waste paper, which will help companies reduce costs.

　　3. Stock market: Renminbi's entry into a real appreciation cycle will become an important positive factor driving the long-term trend of China's stock market. In the short term, it will affect investors' revaluation of companies in industries that are sensitive to exchange rate changes. The paper industry and other industries with a high proportion of imports, large external debts, high liquidity or huge RMB assets have been encouraged by long-term positives and have been sought after by investors and have seen a surge.

　　3. Exported paper: Due to the small export volume of my country's paper and paperboard, my country's paper and paperboard export volume was 1.25 million tons in 2004, accounting for only 2.5% of the output. Therefore, the appreciation of RMB has limited impact on paper and paperboard exports.

　　4. Imported paper: The appreciation of the renminbi this time is small, and the price of imported paper is generally more than 10% higher than that of domestic paper. At the same time, coated paper, newsprint and cardboard paper are currently in the anti-dumping period, so the appreciation of the renminbi will not lead to imports. Paper flooded in.