Around February 24, packaging paper ushered in a new round of price increases with the cumulative price increase of up to 600 yuan/ton, which can be described as an extremely fierce price increase. China paper roll slitting machine manufacturers are trying their best to complete their largest supply for customers. So, what exactly caused the cumulative price rise to exceed RMB 600 / ton? How long can the price increase continue?
The factors of the multi-round price adjustment of packaging paper are analyzed from the following supply and demand sides: Affected by the new coronavirus epidemic, the operating rate of packaging paper companies is still low.
Cause Analysis:
1. The low supply of waste paper is still the main reason. Although the packing station has resumed receiving goods, the supply of paper companies is scarce due to the lack of many stocks in the supplier's reserve. It’s difficult to improve the production efficiency because of various reasons.
2. Some small and medium-sized paper companies have not resumed work because of delays in employee arrival and inadequate material preparation.
3. The paper industry has been consuming the previous inventory, and the inventory is insufficient. Overall, the supply of packaging paper is low. The downstream demand for wrapping paper is picking up and concentrated demand resonance.
Main performance:
1. As downstream companies have resumed production, demand has recovered, and the quantity of raw paper picked up has increased significantly, making it difficult for paper companies to meet their initial inventory;
2. The downstream third-tier factory was concerned about the price rise of the second-level cardboard, and concentrated orders were placed, resulting in an increase in demand for cardboard. At present, due to the tension of the base paper, some cardboard factories have stopped taking orders. Overall, the packaging paper market is in short supply, and the price rise is an inevitable trend. After the company resumes work, how can it solve the problem of short supply in the shortest time?
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