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Causes The Waste Paper, The Original Paper, The Cardboard Price Fluctuation Unusual Reason But Threear
Sep 05, 2018

In the past two thirds of 2018, the price of products of both upstream and downstream enterprises in the paper packaging industry chain experienced strong ups and downs.Waste paper, raw paper, cardboard prices like the weather, face changing very quickly, it is confusing.

The only certainty is that there are multiple objective factors influencing price changes.And these factors will continue for a long time to come.

1. Environmental action

After the successful convening of the 19th national congress of the communist party of China (CPC), the country's attention to the ecological environment has risen to an unprecedented status. The blue sky protection, production restriction and production shutdown plans issued by various provinces and cities have a great impact on the paper packaging industry chain.

All major enterprises are bound to invest part of the cost in environmental protection equipment, large enterprises with abundant capital, small enterprises with weak strength, the industry reshuffle process is accelerated.

2. National policies

It is well known that American waste, Japanese waste and European waste contain more wood fiber, which can guarantee the resilience of recycled paper better than the rough domestic recycling system and waste paper recycling.China's large paper mills mainly rely on imports of raw materials.

The "ban on foreign waste", implemented in March, adjusted the percentage of waste paper clutter to no more than 0.5%, affecting the arrival time of imported raw materials, directly pushing up the price of domestic waste.

The us scrap was slapped with a 25% tariff, which inevitably raised prices and increased procurement costs.

3. Market brief panic

The early policy just came out, before the large paper mills did not form a tacit understanding, many small paper mills pre-emptively, in order to grab the clappers to raise prices, is also a man-made wave of "panic".For a time, everywhere wildly increases price, a week accumulative total of 1000 yuan/ton is not a few.

In the later period, the market gradually found its direction. Large paper mills led the pace. On the one hand, they stopped production and maintained maintenance to ensure reasonable market supply.

And cardboard factory, carton factory also used to this mode, mentality gradually restored reason, the pursuit of the rise and fall of the behavior has significantly reduced, most enterprises no longer holding the speculative mentality, but on demand procurement, rational procurement, to a certain extent for the harmonious development of the industrial chain.

In sum, no matter how volatile the market is, it is difficult for extreme phenomena of "always rising" or "always falling" to exist for a long time.

Although objective factors such as national policies, environmental actions and market momentary panic are affecting price changes, they will also be constrained by market demand.