Affected by various environmental and other factors this year, raw materials in various domestic industries have risen sharply, and the price of base paper in the paper product industry has continued to skyrocket. Individual cardboard companies have doubled the price of paper in just three months.
Is it true that the price of paper has increased?
According to statistics from the Paper Industry Association, the increase in raw materials in 2020 is true
So, what is the reason for such a high price increase of corrugated paper base paper?
According to the statistical analysis of the Paper Industry Association, the main reasons for the price increase are as follows:
1 Rising raw material prices lead to increased production costs
Because at present, the important raw material of my country’s paper pulp is mainly dependent on imports, and the current U.S. export quota for China’s paper raw materials has been reduced by 40%. This is a very big figure. Most of the large domestic paper mills rely on imported pulp. Therefore, the decrease in imported pulp will aggravate the rise in the price of raw materials in the market, leading to an increase in production costs.
2 Transportation is limited, and logistics costs increase
The mandatory national standard (GB1589) implemented uniformly by the country stipulates that the load of a 2-axle vehicle shall not exceed 18 tons, a 3-axle vehicle shall not exceed 27 tons, a maximum of 10 tons for a 6.8-meter vehicle, and a maximum of 10 tons for a 9.6-meter vehicle (14 tons for the first four and the rear four. 18 tons in the first four and eight in the rear), and up to 32.5 tons in a 13-meter semi-trailer! From September 21, the 13-meter semi-trailer will reduce the tons, the total weight must not exceed 49 tons, and the total height must not exceed 4 meters! The new regulations were released, and the whole body was affected as soon as the transportation restrictions caused the increase in logistics costs.
3 Eliminate outdated production capacity, and raw paper inventory is tight
In 2015, the state eliminated outdated production capacity and shut down dozens of nearly 5 million tons of production capacity. At present, there are only about 15 paper-making enterprises in Guangdong Province, all of which cannot meet the demand of the Guangdong market, and some high-end paper relies on imports. Faced with the nationwide elimination of production capacity, it will inevitably have a significant impact on the stock of raw paper, thereby increasing the price of raw materials for corrugated paper.
According to the above analysis, the rising trend of corrugated paper base paper prices is very impulsive. Then, in the face of the increase in the cost of raw materials, how will we respond? Is it a price increase? Is the price still going up?
Price increase is a market-driven and inevitable trend. WOW upholds the concept of keeping its promises and long-term cooperation, and actively provides customers with the most trustworthy guarantee, indicating that the confirmed orders during the holiday will not be affected. After the holiday, all unconfirmed before the year Orders will be quoted again, but they will all start from protecting the interests of customers and are committed to working with you in 2021!
Is the price of paper going up? it is true!