Paper Packaging Industry Prices Soared After 2017 Of Competition Or More Intense

- May 19, 2017 -

First of all, the industry background, because in the production of raw materials in the relatively low threshold, small and medium-sized paper mills; environmental protection and the elimination of backward capacity this sword of Damocles strong fall, minutes millions of tons of capacity said no, the packaging market raw materials tight; October to December, the paper price jumped 40%, the entire industry inventory reached a record low, waste paper peak 45%, as a practitioner did not hear the news of rising wages.
Paper prices and raw materials price rise, seems to be a thriving industry, the actual market size has not become large, the entire industry demand for capital increased sharply; raw material costs to be passed down the floor, suppliers, distributors Sandian Rob downstream, part of the bargaining power of small and medium-sized Enterprises direct losses, some enterprises to produce capital chain dilemma facing elimination.
Some enterprises are difficult to stabilize production, upstream high-quality resources and downstream quality orders to strong enterprise concentration, large packaging factory to promote one-stop service to reduce the intermediate links, and enterprises have merged to form a group, to enhance their own competition for upstream and downstream resources and bargaining power.
In the case of stable economic growth, people's consumption will not leap forward, the packaging industry is still relatively stable, supply stability, service level and product quality can provide enterprise competitiveness, profit and cash flow, rather than the price factor (their own strong natural access to high-quality and cheap resources); Now the profits are good, the competition will be more intense in 2017.

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