Packaging / Advertising & Office

In the past two months, the paper packaging market has staged a good play of "America falls, China is full"!

Due to the steep drop of 70% in waste paper in the United States, the price of imported packaging paper fell sharply. Some packaging plants took the opportunity to absorb a large amount of imported base paper, and thus made a lot of money.

In the past three months, there has been an obvious trend in the corrugated packaging industry, that is, although the RMB has depreciated significantly, the imported base paper has depreciated faster, so that many medium and large packaging enterprises have purchased raw paper, which makes it difficult to obtain imported paper.

A person from the paper industry in the Pearl River Delta told Bao Xiaobian that a certain kraft linerboard imported from Japan by a factory for a period of time was at most 600/ton cheaper than the domestic base paper of the same grade, and some international trade enterprises could also obtain 400/ton profits from purchasing through intermediaries.

In addition, compared with the domestic special A kraft linerboard, the imported Japanese base paper is obviously better than the domestic paper in terms of its physical property indicators, which even led many international trade enterprises to request customers to replace the original domestic paper with imported paper to obtain better printing results.

Why is the imported base paper so flat?

So why is the imported base paper so cheap suddenly? It's a long story. In general, it's based on the following three reasons:

1. According to the pricing survey and market report released on October 5 by the Pulp and Paper Weekly of Fastmarkets, since the average price of waste corrugated boxes (OCC) in the United States was 126 US dollars/ton in July, the price has dropped by 88 US dollars/ton, or 70%, in three months. In one year, the average price of waste corrugated boxes (OCC) in the United States dropped by nearly 77%. Buyers and sellers said that in the past few weeks, the oversupply and restraint of demand led to the waste paper being sent to the landfill. Several contacts said that waste corrugated boxes (OCC) in the southeast were buried in Florida.

2. With the gradual liberalization of epidemic control by major importing countries such as the United States, Europe and Japan, and the elimination of subsidies to enterprises and individuals since the epidemic, the situation that one container was hard to find in the past has completely changed. The container freight returning to China from these countries has been decreasing, which has further lowered the CIF price of imported base paper in international trade.

3. At present, due to inflation, consumption cycle adjustment, high inventory and other factors, the demand for packaging paper in the United States, Europe and Japan has declined. Many factories take the opportunity to reduce the stock of base paper, forcing the price of packaging paper to decline.

4. In China, as the papermaking giant indirectly dominates the market of Grade 0 national waste, it is expected to increase the price expectation of domestic paper by maintaining a high price of national waste. In addition, leading enterprises such as Nine Dragons have taken the way of stopping production to reduce production instead of the way of flash down in the past to cope with the dilemma of the price rise of domestic packaging paper, which has led to the high price of domestic paper.

The unexpected collapse of imported base paper in international trade has undoubtedly disrupted the rhythm of the domestic packaging paper market. However, the move of a large number of packaging plants to choose imported paper for international trade is very unfavorable to the de stocking of domestic paper, and may further reduce the price of domestic paper.

But for domestic packaging enterprises that can enjoy the dividend of imported base paper, this is undoubtedly a good opportunity to attract money.