Paper stocks are broadly higher early on the 30th as disruptions in naphtha supplies from the Middle East persist.
As of 9:23 a.m., Hanchang Paper was trading at 718 won on the Korea Exchange, up 92 won (14.7%) from the previous session.
At the same time, Daeyoung Packaging (9.85%), Shindaeyang Paper (5.6%), Tailim Packaging (7.71%), and Moorim P&P (3.39%) were also strong.
With the Iran war dragging on, naphtha supplies are being disrupted. Naphtha, a basic petrochemical feedstock obtained during crude oil refining, is used as a raw material for various packaging materials such as vinyl, containers, and trays.
Korea relies on imports for about half of its naphtha demand, and Middle Eastern supply is known to account for about 80% of that.
The market sees demand flowing into paper companies that produce eco-friendly packaging such as corrugated cardboard, as instability in plastic-based packaging supplies stands out. Hanchang Paper makes containerboard for boxes, Shindaeyang Paper makes corrugating medium, and Daeyoung Packaging and Tailim Packaging are paper and packaging companies that produce corrugated boxes.