Expected: Paper prices will remain high this year

1. Leading enterprises: Nine Dragons paper products have increased prices in different ranges

Nine Dragons Paper is Asia's largest containerboard raw paper manufacturer, mainly engaged in the production and sale of packaging board products, its revenue accounts for more than 90%, and a small number of cultural paper and specialty paper products.

Nine Dragons Paper has raised the prices of its products in different ranges, and this wave of price increases has quickly affected other leading companies.

Nine Dragons Paper said that the reasons for the price increase in 2018 are: the first is the cost of rising waste paper prices in the future; the second is the increase in domestic demand and consumption, and the demand for packaging paper is increasing. Throughout the first half of the year, it should be said that prices will be adjusted as the cost of raw materials changes, and prices will increase in the raw material market.

Second, small and medium-sized enterprises: did not follow the leading companies to raise prices significantly

Driven by leading companies, the paper industry has ushered in a new round of price increases. For small and medium-sized paper companies, it is not all opportunities.

On the one hand, although the price has increased a bit, it also means that the gross profit of the product has increased, which is a good thing for the enterprise. But on the other hand, SMEs do not have an advantage in raw materials, there is pressure on domestic demand and exports, and they have to face fierce and homogeneous competition in the market. Therefore, for small and medium-sized enterprises, it is unrealistic to want to follow the leading companies to raise prices substantially.

3. Downstream enterprises: profit margins are compressed

Kaili Electronics Co., Ltd. is located in Dongkeng Town and is an electronic enterprise mainly producing capacitors. For more than a year, Kaili Electronics had to face the sharp price increase of raw materials.

Since this year, Kaili Electronics has significantly accelerated the pace of research and development of new products. "We hope to launch new products as soon as possible, so that we can increase the added value of the products, in this way to ease the pressure of rising raw material costs." Yi Jianjun said.

Information collation: Carton Street

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