Industry analysts: the price of the original paper will not last long
Packaging zone, today's waste paper
After the price reduction of Xiaolong, the original paper and waste paper were linked, and nearly 100 paper mills followed suit and urgently adjusted the price. So what is the driving force and reason behind the paper mill's collective fine-tuning of paper prices? How long will the price cuts last?
Yesterday, Nine Dragons Paper officially implemented a price reduction adjustment of 100~200 for paper prices. Since then, the downstream paperboard industry has responded quickly: the paperboard factory in the Pearl River Delta has given three to five points of concessions, while the Yangtze River Delta The cardboard industry also has two fine-tunings.
Under the influence of the domestic and international market environment in 2018, many paper mills have been continuously shut down, but long-term downtime has made their losses more. This situation has made major paper companies into a dilemma, so many companies are forced to do With the adjustment of business strategy, I hope to change the dilemma of business operation.
About this wave of paper price reduction adjustment. Xiaobian sorted out some of the more reliable reasons given in the market:
First: After the year is the off-season of orders, plus the export orders for the first quarter of this year, which will be completed in the fourth quarter of 2018, and the two phases will be superimposed, resulting in a sharp decrease in market demand.
Second: During the Spring Festival, many paper mills did not strictly implement the plan for downtime. A wave of price hikes at the end of February eased the inventory pressure to some extent. However, due to the interaction between the huge capacity of the paper industry and the continued shrinking market demand, the paper mills' inventory has been squandered, forcing the paper mill to adjust the price.
Third: After the long-term frequent downtime in 2018, the upstream paper industry has caused great losses to the company. In this regard, the paper mill carried out a strategic adjustment in 2019, and in the case of a certain adjustment space on the paper price, try to keep fast forward and fast.
For many paper mills, because of the inventory explosion, they have to cut prices. Mr. Xiao Jian, the chief consultant of Chenlong Intelligent, said: “The price drop represents insufficient demand, and everyone at the start rate is dissatisfied. Only the price reduction method can be used to obtain orders.†He believes that in the current surplus situation, the effect of price cuts on acquiring orders is getting weaker and weaker, then a model is needed to allow some people to eat first.
Mr. Pan Ronghua, the cloud carton, believes that the price cut is strategic. He said: "Cardboard is a panic-stricken price cut, and the carton is forced to cut prices, but the price of the original paper will not last long."
At present, the paper price is loose, and there are many uncertain factors in the future. Xiao Bian still keeps that view: the follow-up paper price will also fluctuate greatly.
In this rapidly changing market environment, the entire paper packaging industry is running on thin ice, and if it is not good, it will be lost. I hope that everyone will recognize the situation and be careful to enter the pit.
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