Under the storm of price increases, Chinese paper, packaging and printing industry experienced a thrilling journey in 2016. Over the past year, the fate of countless entrepreneurs and practitioners has been rewritten. So what factors cause this? Here we got
Raw material price increasing
The price of PVC, Glass, Plastic, Hardware, Components, Sponge etc increase more than 30%. And wood pulp, energy, filter paper glue, coal substantial increase make printing and packing industry suffering serious impact. Paper price rising out of control. Especially C1S paper, C2S paper, woodfree paper, corrugate paper.
Large-scale shutdown production
Since the beginning of Sept. the smog weather getting bad to worse in some place North of China and the area begin to expand rapidly. Considering health and production, Ministry of Environmental Protection strictly fight against with the pollution industry. Majority of small and medium-size paper enterprises forced to stop production or close. After the production capacity focus, the source of paper reduce. Then make us in a passive situation, difficult to find out papers.
Transport costs rise
Due to the low profits of paper industrial in previous years, they very sensitive to the cost of transport, besides, the delivery vehicles overload is common in our daily life. From the beginning of Sept. 21th 2016, “the most strict rule” broke the balance quickly, so that transport costs rose sharply.
Depreciation of CNY
Depreciation of CNY makes the rising of raw material becoming more and more unpredictable. As half of the raw materials of paper industry rely on imported, the depreciation lead to higher material costs.
Basing on survey, there still have other factors affect paper price. But now we fall into a terrible phenomenon, paper price keep rising and we can got documents/notification from paper supplier week after week