Paper mills raised prices to purchase waste paper, competing for raw materials, which also caused the price of finished paper to rise in the off-season. Taking corrugated base paper as an example, the average price in the first quarter of 2018 was 4,084 yuan / ton, up nearly 6% from the same period in 2017. As the downstream cardboard mill, the cardboard and carton packaging industry is facing rising raw material prices and traditional low season. Pressure, began to reduce the purchase of raw paper.
At a cardboard factory in Linyi, Shandong, staff told reporters that they are currently in the traditional off-season and their orders have dropped by about 10% in the last two months.
Orders have fallen, but the price of raw paper has risen, which has also increased their cost pressure, and they have to reduce some raw paper purchases.
Xu Minghai, manager of Shandong Linyi Jinghua Packaging Co., Ltd .: We will purchase 400 tons of paper on average. Under normal circumstances, we will control it at 350 tons. If it is the peak season, we will consume 370 tons of paper per day. We will find ways to purchase 800 Tons of paper.
Cheng Xizan, Manager of Quality Department of Shandong Rizhao Weimei Packaging Co., Ltd .: Because our product cost is 70% -80% in this raw material, if the paper mill wants to raise the price, we need to negotiate with the downstream customers to the extent that the price is acceptable to each other
The industry believes that with the weakening of the downstream cardboard factory carton factory's willingness to take goods, the paper mill's shipments have dropped significantly, and late April is still a low season for demand, and the paper price continues to rise in the short term.
Tang Yanju, deputy secretary-general of China Recycling Resources Recycling Association: The price has risen to a certain extent, even when the terminal cannot accept it, then the paper mill may have a price adjustment because it has pricing power, and this collective price adjustment may also go down. .
Information collation: Carton Street
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