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Paper price rises above 10,000 CNY/ton, setting a new height for paper prices in the Year of the Ox
2021-03-02
The price increased by 1800/ton a day, and the price of white cardboard entered the ten thousand echelon

On March 1, the news that several white cardboard giants increased their prices by 1000-1800/ton in a single time, completely refreshing the new height of paper prices in the Year of the Ox, and also subverting people's cognition. Caught off guard, the price of white cardboard directly rose above 10,000/ton.

According to downstream packaging factories, on March 1st, Shandong Bohui Paper has received a notice that the price of a new order from Shandong Bohui Paper will be increased by 1,000/ton on the basis of last Friday’s quotation. After the price adjustment, the price of 250g white cardboard will be as high as 10110/ton roll. Tube (tax included). Another giant Ningbo Zhonghua Paper also announced an increase in the price of new orders by 1800/ton, and the unit price of web has also entered the ten thousand echelon! The quotation of Yimao Paper also confirmed this news.

As the production capacity of white cardboard is relatively concentrated, the increase in paper prices is also easier to form a linkage. There were not a few companies that adjusted prices that day. Chenming Paper’s Shandong and Zhanjiang bases are raised by 1000/ton; Bohui Group’s Shandong and Jiangsu bases are raised by 1000/ton; Henan Xinxiang Xinya Paper is raised by 1000/ton; Wanguo Paper is raised by 1000/ton; Guangxi Jingui Paper is raised by 1000/ton 1800/ton.

After this round of great leap-forward price increases, the prices of white cardboard in many paper mills exceeded 10,000/ton. A paper mill salesman exclaimed: This is the first time in the career of selling paper that the price is over 10,000, don't be too exciting!

Two increases in one letter, whiteboard paper starts a phased price increase in March

For corrugated boxboard and whiteboard, although the increase in March was less than that of white cardboard, it has already experienced two to three rounds of price increases after the Spring Festival, and the downstream has long been "unbearable." After the price of Shanying Paper's base paper increased by 100-500/ton on March 1, the market sparked another wave of splashes.

Dongguan Jianhui Paper is even more "one letter, two rises", announcing that it will raise the price of gray-bottomed whiteboard paper by 200/ton twice on March 9 and 23, and the cumulative increase will reach 400/ton. If the market continues to skyrocket, perhaps this price increase model will soon become a template for Dongguan and even the entire China to follow.

Looking at the paper market, it has now been shrouded by "price increases." So, where is the motivation for the price increase? According to the analysis of the editor of Huayin, the following four main reasons are the driving force of frequent rises in paper prices in the short term.

1. After the implementation of the waste ban, the supply of raw materials has decreased and the price of paper has been increased;

The formal implementation of the ban on waste on January 1 caused a tight supply situation in the national waste market. The tightening of the waste paper policy has injected a strong impetus to the increase in paper prices for my country's carton industry, which is heavily dependent on imports of raw paper. The soaring cost of raw materials has become a force that cannot be ignored in pushing up paper prices.

2. Rising costs on the supply side become the leading factor in price increases;

The increase in paper prices is mainly affected by supply-side factors: on the one hand, the prices of waste paper, coal, chemical additives, etc. have risen, leading to rising production costs for paper companies, so the price of raw paper has been raised; The substantial price increase affects the price increase of base paper.

3. Raw paper mills are easy to establish price alliances, and the reluctance to sell and chase prices push up paper prices;

There is a phenomenon in the industry: when the stocks of the original paper mills are sufficient, they start to shut down to insure the price, creating an atmosphere of shortage of stocks in the market, and downstream companies are more panic. Because of the fear that the price of paper is getting higher and higher, they are desperately stocking up. It is difficult for the paper price not to increase if the sales reluctance and the pursuit of rising behaviors "cooperate"!

4. Production capacity tends to be concentrated, and large paper mills have the right to speak.

In recent years, as the country has stepped up the elimination of backward production capacity, paper production capacity has become more and more concentrated. Especially in the white cardboard industry, the production capacity is basically concentrated in the hands of several giants such as APP, Chenming, IWC and Bohui. The concentration of production capacity inevitably means having an absolute right to speak in pricing.


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