Paper prices soaring
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Since the fourth quarter of last year, the price of domestic paper has continued to rise, with an average price increase of around 700 yuan per ton, an increase of more than 10%. What is more serious is that after the price increase, many products in the market still have no price, and the supply is in short supply. The paper mill has changed the practice of actively cooperating with the printing plant in the past, and requires the factory to be shipped before the purchase of the funds. The pressure, even once appeared, even if the printing plant is out of paper and faces production stoppage, the paper mills are still unreasonable.
Various situations indicate that there is a further upward trend in paper prices.
The uncontrolled increase in paper prices is undoubtedly worse for printers that are inherently less efficient. How to deal with the continuous price increase of paper mills? How to ensure the paper source of the sudden bulk printing business undertaken by the company? How to ensure the expected profit target set by the board of directors this year? It can be said that it has become a heart disease of the printing industry leaders. The rise in paper prices has become a beast and a beast.
Exploring the reasons for the skyrocketing price of paper
There are two reasons why the paper mills have been aware of the rising sales prices for a period of time:
First, the prices of raw materials such as pulp continue to rise.
China is a country with relatively low forest cover, and papermaking materials are mainly imported. In 2007, China imported a total of 8.386 million tons of wood pulp from North America, ASEAN, South America and Russia. The average price was 655 US dollars per ton, up 18.7% over the previous year. The rising price of imported wood pulp naturally drives the continuous rise in the price of finished paper.
In addition, there is still a considerable amount of paper in China, which is produced by the technology of waste paper deinking and remanufacturing. The largest source country is the United States. In 2007, China spent a total of 4.04 billion US dollars to import 22.56 million tons of waste paper, the average purchase price of 179.2 US dollars, up 27.9% over the previous year, only 93.25 million tons of waste paper from the United States. The United States has accurately identified this demand and substantially increased the price of waste paper for export. As a result of the unsuccessful negotiations, there has been a situation in which waste paper is off the stall and affects the normal production of paper mills. This is like the fact that several large iron ore suppliers around the world have joined forces every year to put pressure on China on the price of ore.
The tension of raw materials naturally leads to higher prices for the final product.
Second, the cost of energy conservation and abatement remains high.
Papermaking requires both a large amount of electricity and a large amount of water, and is also a major polluter. In other words, papermaking is a resource-consuming industry that is highly controlled by the state and has high power consumption and heavy pollution. Along with the increasing emphasis on environmental protection work in the country, paper mills have changed their past passive handling of environmental protection inspections, and their investment in energy conservation and emission reduction has increased. This has undoubtedly increased the production cost of paper mills. Will rise.
In addition to the above reasons, there is a reason why paper mills are unwilling to talk about, that is, the paper mill itself is driven by interest to take advantage of price increases.
From the perspective of strengthening environmental protection, local governments have for some time forced the closure of a number of paper-making enterprises with low production capacity and “three wastes” that cannot meet the standards. The closure of these paper mills has also objectively reduced paper production, resulting in changes in supply and demand.
In the case of a shortage of supplies, the paper mills are pushing for help. Taking advantage of the price increase will not only transfer the rising cost of raw materials to the downstream industry, but also enjoy the excess dividends brought by the market. As a user, although I am resentful, I can't help it. This is why some A-shares of listed paper companies are still in a leading or losing position when the market is down.
Of course, this analysis is just a statement of my family. From the perspective of the paper mill, I can certainly talk about a lot of reasons and difficulties, but I am willing to throw a brick to attract the jade, in order to find the real cause of the paper soaring.
The rise in paper prices has a huge impact on printing companies
The price increase of paper, of course, is directly affected by its downstream industry, just like the price increase of gasoline, and the car owners bear the brunt. These downstream industries include: newspapers, publishing houses, printing houses, advertisers, and so on. Of course, the ultimate consumer is the people who come into contact with newspapers, magazines, books, and textbooks every day. They will definitely be affected by the price increase of paper.
In this round of paper price hikes, the most affected is the printing company that uses paper as the most basic raw material.
Because, in the overall market environment of oversupply, printing companies have been exhausted after fierce and brutal competition in recent years. They have already entered the era of low profit, and are unable to withstand the pressure of paper price hikes.
Because the printing company as the producer of the final product is in a weak position at the bottom of the supply chain, it is impossible to maintain the production because of the large price increase of paper, not to buy paper, and no bargaining power to increase the cost to the downstream industry. Many contracts of the printing house, especially periodicals, regular shopping mall advertisements and other products have signed a one-year contract with customers at the end of last year, which means that it is very difficult to increase the production cost of each other and change the annual budget of the other party. thing. It is impossible for the other party to bear the full price increase.
In fact, the factors that increase the cost increase by printing companies are not happening today. For example, in order to implement the guiding ideology of "rejuvenating the country through science and education", textbooks gradually went to the government to pay the bill. Obviously, it should be paid at the price approved by the government price department, or open bidding, through the bidding to select publishing, printing processing units or enterprises. But the actual situation is: the government procurement department requires a certain percentage to float on the basis of the current price. As a result, after the publisher made a certain percentage of the profit, the purchaser asked the printing company to follow the profit. If the publishing house allows Lishang to bear the ability, let the printing company follow the profit, in fact, it is necessary for the printing company to further reduce the income in the profit that is not thick, so that the enterprise is unable to appropriately increase the wages for the employees under the condition of rising prices.
Another example: in order to reduce the cost of publishing to obtain profits, the publishing house must compare the paper. The result is that the paper price is getting lower and lower, the paper quality is getting worse and worse. Originally, the ordinary PS version can be printed with 50,000 to 100,000 impressions. The edition now prints 1 to 20,000 copies, which not only greatly increases the production cost of the printing factory, but also greatly reduces the product quality, reduces the production efficiency, and greatly increases the paper loss, which is not worth the loss. In order to reduce the cost of learning for students, it is extremely unreasonable for all the printers to over-pay, which is also contrary to the original intention of the government procurement department.
According to data released by the Shanghai Municipal Labor and Social Security Bureau and the Shanghai Municipal Press and Publication Bureau, in 2005 and 2006, the average income level of print workers in Shanghai was roughly two-thirds of the city's average wage. The rankings of the major industries in 2007 announced by Zhi Network are: finance, high-tech, real estate, consulting, media, automotive, consumer goods, medical, energy, and manufacturing (see 2008.1.23 Xinmin Evening News). Here, the manufacturing industry is in the bottom-down, and the printing factory belongs to the manufacturing and processing industry. Its status is still under the manufacturing industry. Now it faces the situation that the price of basic raw materials required for printing has risen sharply. Is it difficult to cause us to be deep? Deep worry?
Paper price trend analysis
Since the basic reason for the sharp rise in paper prices over time is the increase in pulp prices, because all countries in the world pay more attention to the factors controlling forest deforestation because the country attaches more importance to environmental protection because paper production is high energy consumption and high pollution. By the factors controlled by the state, then the possibility of falling paper prices is relatively small. Moreover, in terms of reason, these controls should only be strengthened and should not be weakened, and the immediate interests of enterprises should be eliminated. In the long run, this is also a good thing for the benefit of the country and the people.
The problem is that the printing company should get the profits that the enterprise deserves through the hard work of the employees, and get the income that the employees deserve. The enterprise cannot ignore the interests of the employees, and it is impossible to talk about social benefits alone, not to mention economic benefits. There is a phenomenon of imbalance in value in the market, so the government needs to be guided by the policy and recognized by the society, so that the printing enterprise can undertake business at a reasonable wage price and survive in society. Of course, this also requires the joint efforts of all industry colleagues. It is reported that the Hong Kong Printing Industry Association announced last year that print prices rose by 12% from April. It is still difficult for the mainland to do this now. One reason is that domestic entrepreneurs pay more attention to their own interests and have insufficient recognition and compliance with market rules. The so-called lips are cold, every link in the industry chain is closely linked. Every link should enjoy the average profit rate of the society through market fairness. If the foundation is missing for a long time, the industrial chain may have some kind of break, which will bring harm to the industry. These principles seem to be verbally understood, but in actual processing, they tend to consider more about maintaining their own interests, and consider the long-term interests of the whole world less. At the end of 2005, the Ministry of Finance issued a printing factory substitute to produce products with book numbers and issue numbers at a rate of 13%, which was delayed in many areas. In the end, the publisher refused to accept him. The 4% of the gains made were given out. Another reason is that many printing companies are difficult to form synergies for their immediate interests. The role of the Printing Association is incomparable with the mature Chamber of Commerce in Hong Kong.
The problem is that the government should give appropriate interventions for paper soaring, or appropriate financial support for paper mills; or appropriate subsidies for paper purchases involving cultural education; or tax policies for companies engaged in publishing and printing. On the offer; or limit the export of paper for a period of time, and so on. In doing so, it has both a side that helps printing companies get out of trouble and a policy-oriented side. For products with high power consumption and heavy pollution, they are mainly to meet the needs of the domestic market. They do not deliberately pursue production and pursue exports, so as to avoid harming the interests of their own countries for the benefit of others.
Another point that must be pointed out is that in the market economy environment, even if our paper mills change from "slaves" to "generals", the service attitude and service quality must not decline. Now it has begun to appear. As people become wider, they become faceless, the supply of paper becomes tighter, and the sales attitude becomes a "cow" state. The demand for the printing house is not an idea to satisfy, but to find various reasons to block the drive, it seems to forget The dilemma that has been painstakingly promoted not long ago. The emergence of this situation, in the end, is not firmly established in the idea of selling the best service to customers. This attitude of forgiveness does not change, and one day, it will still be punished by the market.
In short, printing companies have faced the pressure of rising labor prices and shortage of funds. Now, with the increase in paper prices, it can be said that the pressure on the fire has further aggravated the pressure on enterprises. Natural competition, big waves and sand, printing companies can only find ways to bravely face this Huashan road, while striving for policy, speed up technological progress, improve labor productivity, can effectively digest cost pressure, survive in the cracks. Let us work together!