Paper raw materials and freight trends

Introduction: At the beginning of the September Shopping Festival, the price of packaging paper has risen, and the paper packaging enterprises have ushered in the "cold spring"!

On November ,15th , 2020, the traditional Chinese New Year is coming , Dongguan once again blew the horn of price increases. I believe that other paper companies may follow up on price increases. The packaging paper has risen again, and the paper packaging company has ushered in the "cold spring"!

Looking back at the past wave of price increases, it can be traced back to October 2019. On October 15, Dongguan paper printing , Guangdong paper printing, and Dongguan Jianhui announced that they would raise 50 yuan per ton of paper. In December, xiaolong, Jinzhou and Yinzhou announced another 50 yuan increase in tons of paper. At the end of December, Ji'an Group, Jiangsu Liwen, Taicang Xiaolong, Yangzhou Yongfengyu and Zhejiang Jingxing announced an increase of 50 yuan per ton of paper. On January 13th, Dongguan printing has increased the price of white and white ton of white paper by 50 yuan. On January 20th, Dongguan Xiaolong increased the price per ton of gray-white board and white low-white paper by 50 yuan. To this day, Dongguan printing has been raising prices several times in a row.

For this wave of price increases, there are of course many supporting factors: rising environmental costs, increased labor costs, a large number of small and medium-sized paper-making enterprises to stop production, and the urgent need for paper companies to get rid of the high debt ratio. Moreover, in the case of major paper companies began to warm up, and in the case of a total advancement and retreat in the price of the original paper, it seems that the price increase is a matter of fact.

In fact, from the recent annual report published by Paper Printing , it reflects that the company's core profit per ton of paper is 197 yuan, far higher than the bank's expected 130 to 150 yuan. For this time to rise again, it is somewhat capricious. Because everything is done, if the price of raw paper rises excessively, it is counterproductive. It seems now that the price increase of the original paper seems to have deviated from the market conditions of downstream customers.

According to data released by the National Bureau of Statistics of China on February 18, in January 2016, the ex-factory price (PPI) of Chinese industrial producers fell by 0.5% from the previous month, down 5.3% year-on-year. The data proves that the price of paper packaging has not risen with the rise of the original paper, but it has declined.

Judging from the feedback from various packaging and printing companies, the original paper stock is still abundant due to the too light packaging and printing orders in September . In addition, there are not many orders just after the September Shopping Festival . and various companies are still waiting to see if they are buying raw paper. Therefore, the price increase is slightly rushed.

Due to the epidemic this year, the number of ships at sea is limited by various countries, resulting in many goods have to wait for transportation. Customers are in a hurry to transport goods, so the freight has been rising this year.Because the freight is very expensive, a lot of customers are lost.
The timing of this price increase is not yet mature, and it is difficult to gain market recognition. Next, let's wait and see what the price trend of the original paper will be.