Paper margins boost Samson
Paper wholesaler Samson Paper Holdings said paper prices had regained some ground, raising gross profit margins for the industry.
Profit margins improved from about 1 to 2 per cent to about 8 to 12 per cent compared with 15 to 16 per cent before paper prices fell.
Chairman Sham Kit-ying said prices had stabilised at about US$620 per tonne, while some European suppliers saw it increasing further to about $650.
The slide was attributed to producers' over-estimation of global demand last year with the eventual inventory build-up prompting traders to cut prices.
The average downfall of prices last year was 18 per cent with uncoated wood-free paper and duplex board dropping 20 per cent and 26 per cent respectively.
Mr Sham said the firm expected to maintain inventory levels at about 26 days ahead and competition should be eased soon.
