As tensions in the Middle East raise concerns about disruptions in naphtha supply and demand, paper stocks are rising on the 27th.
As of 10:04 a.m., Hanchang Paper is trading at 687 won on the Korea Exchange, up 132 won (23.78%) from the previous session.
At the same time, Monalisa (13.48%), KleanNara (6.66%), and Hankuk Paper (6.4%) are also strong.
With the Iran war destabilizing naphtha supply and demand, investor sentiment appears to be flocking to paper stocks that produce eco-friendly packaging.
Naphtha, produced in the crude oil refining process, is a raw material needed for plastics, synthetic fiber, and synthetic rubber. Korea relies on imports for nearly half of its naphtha demand, with Middle Eastern supply accounting for 80%.
Jung Hae-chang, a researcher at Daishin Securities, said, "As the Middle East situation destabilizes naphtha supply and demand, supply and demand are concentrating on recycled and eco-friendly packaging."