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Analysis Of Kraft Paper Prices From Eight Aspects Of Why Soaring?

Oct 20, 2017

Market economy supply and demand changes caused by changes in prices have a certain rationality, but should not runaway wild horses, irrational large price increases, do not rule out some kraft paper mills or some raw material manufacturers took the opportunity to price increases behavior. We analyze, a variety of factors superimposed lead to kraft paper prices.

One is caused by rising raw material prices. Price starts from the packaging paper. As the rapid development of electricity, the demand for packaging paper increased. Packaging paper is mainly made of waste paper, dependent on imports. Last year, imports of waste paper volume decreased, causing pulp prices.

Second, is due to changes in exchange rates, increased cost of imported pulp, while export profits increased than domestic sales, imports of pulp to reduce the dealer hoard goods reluctant to sell, pulp prices all the way higher, the current pulp prices rose more than 20%.

Third, China is currently the world's largest papermaking industry, a serious excess capacity. In the country more stringent environmental policy requirements, energy-saving emission reduction, small and medium enterprises shut down and turn, large enterprises limited production, making the corresponding reduction in the supply of kraft paper. And small paper mills closed, large enterprises easy to form a monopoly, and even may limit production price.

Fourth, the cost of papermaking enterprises, such as labor costs, transport limit logistics costs, coal, electricity prices are increased.

Five, is a long-term loss of papermaking enterprises, can only pass the cost of pressure, the inherent requirements of deficit balance, competition for price dominance and voice.

Six is the price is expected. Agents and end customers bullish market, hoard goods reluctant to sell, further exacerbate prices.

Seven, is the overall reduction in kraft paper inventory. Papermaking enterprises to maintain the normal sales of inventory decline, printing manufacturers use their own inventory also declined. A few years ago kraft paper prices stable, about the printing manufacturers in order to reduce the capital occupation, the pursuit of zero inventory, once encountered this price cycle, zero inventory defects.

Eight, is the overall tension in social capital. In 2017, the financial system credit compression tightened, the use of funds to raise the threshold, the increase in financing costs, making papermaking enterprises to shorten the account.