A Number Of Paper Mills Have Announced That The Price Of Paper Has Soared, And The Profitability Of E-commerce Has Continued To Shrink!

- May 24, 2018-

A number of paper mills have announced that the price of paper has soared, and the profitability of e-commerce has continued to shrink!

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On February 23, the reporter was informed that the new round of acquisition prices of waste paper by paper mills continued to adjust, and some paper mills resumed acquisitions. Among them, the highest increase in East China was 100 yuan/ton, while the corrugated paper rose by 200-300 yuan. /Ton news also came. Now that the Spring Festival has reached the eighth grade, the paper mills and packaging plants have started to work one after another. What kind of trend should the paper prices follow after the Spring Festival? Experts predict that from the various indications, there will be more base mills joining the army of rising prices later.


Waste paper price rose 30-100 yuan/ton


Today’s latest news shows that the purchase price adjustments for paper mills across the country are as follows: Some paper mills have resumed acquisitions, and the highest in East China has been raised by RMB 100/tonne. Paper mills such as the Shangrao Sanhe Paper Mill in Jiangxi Province have also begun to resume acquisitions. The paper mills in southern China began to resume acquisitions. The price of waste paper in Hebei Qinhuangdao in the northern region has been adjusted.


It is understood that due to the impact of restrictions on the import of waste paper, in 2017 China's import of mixed waste paper was banned, and the total amount of waste paper imported was greatly reduced. Affected by this, domestic waste paper prices rose sharply. According to data from the General Administration of Customs, in 2017, the cumulative import of waste paper in China was 25.72 million tons, a year-on-year decrease of 9.8%; the cumulative amount of imports was 399.3508 billion yuan, an increase of 21.3% year-on-year. China’s waste paper import policy continues to tighten. According to industry sources, in 2018 China's waste paper imports and approvals will decline compared to 2017.


Dr. Hu of Jiangxi University of Finance and Economics analysis believes that China, as the world’s largest waste paper demanding country, imports far more than other Southeast Asian countries. In the long run, suppliers will increase the sorting cost to meet China’s standards. Or more inclined to purchase high-standard waste paper. What will China's waste paper imports show in 2018? In this regard, Dr. Hu believes that there are many uncertainties in the import of waste paper in 2018. The later implementation of customs inspection by the commodity inspection authorities and the approval process of the Ministry of Environmental Protection on import licenses will have a significant impact on market conditions. In 2018, the tightening trend of import policies remains unchanged. It is expected that the volume of waste paper imports and approvals in 2018 will decrease from 2017. The sharp increase in the cost of major raw materials for enterprises has also driven up the prices of corrugated paper and cardboard.


March wrap prices may rise again 2


Prior to this, there were many paper companies that announced price increases starting from March 1, such as the Galaxy Paper will be based on the company's silver licensing high-strength corrugated base paper prices based on the current implementation price, a unified increase of 200 yuan / ton. At that time, some people in the industry had already predicted that there would be more original mills joining the price increase team during the new year, and the original paper price would rise again.


According to incomplete statistics from the reporters, most paper mills are concentrated in February-March, and production in February is indeed limited. Except for some large-scale paper companies that have large inventories, small paper mills can supply less raw paper, and the market supply. At a lower level. After the start of the year, cardboard and carton factories began to stock up, in order to increase the production of horsepower, market demand will support the implementation of this wave of raw paper prices.


The same type of white paper, another type of wrapping paper, is not optimistic. For example, Chenming Paper raised 100 yuan/ton from March 1st; Bohui Paper raised 100 yuan/ton from March 1st; Wanguo Paper raised 100 yuan/ton from March 1st. From the cost point of view, the new regulations for environmental protection control standards for foreign waste imports will be implemented starting on March 1, and external waste supplies will be tightened. According to statistics, the reduction in the import of waste paper quotas in 2018 is expected to be 20-30% from 2016, and the recovery rate of waste paper will increase slowly. The external waste gap will be at least 9 million tons, which will further increase the national waste price. Under the pressure of cost, the original paper mill can only increase the price of paper in order to transfer the pressure to the downstream. Judging from all the signs, there will be more paper mills joining the army of rising prices later.


E-commerce profit margins are compressed


Many e-commerce companies stated that due to this, individual corrugated box prices rose by 15% to 25%, and the profit margin of the company may also be compressed.


Since April last year, the purchase price of corrugated boxes has been rising. In fact, the price of corrugated boxes rose by nearly 70% last year. It is understood that the new round of waste paper price increases in East China, South China, North China and Central China.


On February 22nd, it was the Lunar New Year's Day 7. In many places, the cardboard carton factories all started firecrackers that started their business, and they also ushered in the "upswing" of the corrugated paper New Year: the price of the base paper rose by 200-300 yuan again. Ton! Many people in the industry stated that “I guessed it was going up but I didn’t expect it to come so quickly.” Experts said that for the larger e-commerce platform, most e-commerce platforms can increase the purchase price of corrugated boxes from the inside. The impact will not be relieved by the price increase of commodities. However, the increase in the corrugated cartons purchase price will directly increase the operating costs of the company. To maintain the competitiveness of the goods in terms of prices, the company will not easily increase the selling price of the goods, but if the corrugated box purchase price continues to rise, this part of the price pressure may Pass to consumers.

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