Paper packaging industry raises product prices in response to rising paper prices

As an important raw material for printing and packaging companies, the price of paper has risen steadily recently, and the biggest increase is in packaging paper. In the first three quarters of this year, the price of packaging paper increased by nearly 50%, which drastically increased the cost pressure for packaging companies. In response to this situation, the relevant industry associations issued a notice in mid-September, recommending that paper packaging companies increase the sales price of cartons and cardboard by 25%. It has been learned that some companies in Tianjin and Zhejiang have raised the prices of their products, but there are also companies that dare not rashly say how much they want to get prices.

The price of packaging paper has risen for three consecutive years. "The main raw material for paper packaging is corrugated paper, but base paper has been rising in price in the past three years, and only two declines. The prices of newsprint, coated paper, and writing paper are usually decreasing or rising slightly, but The price of raw paper has been rising sharply, and this price increase is disorderly,” said Liu Shousheng, secretary-general of the China Packaging Federation’s Paper Products Packaging Committee (hereinafter referred to as “China Baolian Paper”).

The packaging industry in the Yangtze River Delta region is relatively developed, and packaging companies here have complained about the rising price of paper. The relevant person in charge of the Packaging Federation of Wenzhou City, Zhejiang Province, said: “The corrugated paper and paperboard used by packaging companies have all gone up in price. The average price of packaging paper in the third quarter of this year was about 40%. Paper accounted for 70% of the cost of cardboard and carton. Eighty percent, the days of packaging companies are really bad."

The staff of the Printing and Packaging Association of Cixi City, Zhejiang Province, said that in the recent hearing from member companies, paper prices have risen a lot. Beijing Dongyue Printing & Packing Co., Ltd. staff also explained that the recent packaging paper is indeed increasing prices. According to media reports, the A-grade kraft paper with an original price of 2,900 yuan per ton has now risen to 4,100 yuan per ton; Fuyang's A-class whiteboard paper has risen from 3,300 yuan per ton to 4,600 yuan per ton in the first half of the year, an increase of 39.39%. .

Rising raw material prices led to higher paper prices Compared with the relatively stable publications printing market, the demand for packaging in the domestic economy continued to be strong. However, the supply of paper was not only insufficient but also the price was rising. This made packaging companies even more sad.

Why is the price of packaging paper rising? Hou Peng, sales manager of Beijing Branch of Shandong Chenming Paper Group Co., Ltd., said that this was mainly due to the increase in price of papermaking raw materials. This can be proven from relevant statistics. Checking the customs statistics found that in the first 8 months of this year, the import price of papermaking raw materials in China showed an upward trend. In the first eight months of this year, the average price of imported waste paper in China was US$215 per ton, which was a year-on-year increase of 72.1%; the average price of imported wood pulp was US$764.4 per ton, which was a year-on-year increase of 63.5%. In addition, the reduction in the volume of corrugated paper imports and the increase in exports also led to a reduction in domestic supply and accelerated the increase in corrugated paper prices. According to customs statistics, in the first eight months of this year, China imported a total of 166,000 tons of corrugated paper, a decrease of 53.4%, and exported 11,000 tons of corrugated paper, a year-on-year increase of 75.5%.

In addition, in recent years, the country has vigorously promoted low-carbon economy, energy-saving and emission reduction. A series of environmental protection policies and regulations have been issued. The paper industry has gradually increased the elimination of backward production capacity. Paper mills have to increase investment in environmental protection. Many environmental protection standards are not met. Small-scale enterprises have had to close down production.

Some industry analysts have analyzed that the implementation of energy-saving and emission-reduction policies has also led to an ever-rising threshold for papermaking companies. The domestic market share is basically occupied by the eight major paper mills. This has also led to a weakening of competition within the industry and an easy formation of price alliances. Uniform price increase.

Some companies raised their prices in the face of skyrocketing packaging paper prices. How does the packaging industry face?

It was learned from the China Baolian Paper Committee that the China Baolian Paper Board has been writing relevant national departments in recent years to reflect this issue. It is understood that the National Development and Reform Commission has also reduced the export quota of base paper to ease the contradiction between supply and demand; but after the increase in export quotas, the price of base paper rises again.

In mid-September, China Baolian Paper Board issued a notice to paper packaging companies and recommended that enterprises increase the sales price of cartons and paperboards by 25% on the basis of the original contract price of each company. China Baolian Paper Committee also called on paper packaging companies to change their economic growth methods, strengthen corporate management, further tap potential, and improve corporate profits. At the same time, they hope that paper packaging companies will actively communicate with upstream and downstream companies and gain understanding and cooperation through dialogue for a win-win situation.

One month after the price adjustment notification was issued, some packaging companies in the region have already been implemented. Liu Shousheng said: "Now I am on a business trip to Tianjin. Some packaging companies in Tianjin have already implemented this notice and adjusted the prices."

Relevant person in charge of the Packaging Association of Wenzhou, Zhejiang Province stated that the printing and packaging companies in Wenzhou have adopted cost reduction through enhanced management, energy conservation and consumption reduction. However, the price of paper has risen so much that it has been rising in the past three years and has gone up four this year. Five-tenths, it is difficult to digest the cost of this part of the increase in management alone, so raising product prices is the key. He said that Wenzhou packaging companies are also gradually increasing the price of printed products, some companies raise prices by 25% to 30%, and some companies themselves to reduce costs by strengthening management.