White cardboard prices are on the rise, and Indian companies need to respond to them.

In the case of a fairly quiet customer order, a black swan appeared in the packaging and printing company. Chenming Paper, Bohui Paper, APP and other major domestic white card suppliers simultaneously announced white cards, and copper cards rose 150 yuan per ton.

In the past two years, in the face of the double dilemma of China's continued economic downturn and shrinking white cardboard, China's white cardboard suppliers often use price increases to solve immediate crises. Since 2012, the price of white paper suppliers has sent a letter, the density is more frequent, and the momentum of leading paper synchronous prices has gradually increased.

It is difficult for paper packaging and printing companies. Labor costs must rise, wages do not rise, and collective strikes from application workers are still harmful. The paper industry is a typical capital-intensive enterprise. Coupled with the high debt ratio, the loan interest of tens of billions or even tens of billions is a heavy burden. And intermittent blue, blue paper caused by the production stop, continue to overweight environmental costs, foreign exchange losses caused by the depreciation of the renminbi, etc., snakes can bite. In short, the white cardboard factory is also difficult. Has been caught in a more and more vicious circle, but the market price is one thing, then not accepted, this is different. Since China's paper industry is a freely competitive industry, paper prices are mainly determined by urban on-site supply and demand decisions. From the beginning of 2010, white cardboard was oversupplied. Although the sound is called, the price of paper products does not rise. Therefore, in the past few years, many basic price increases have not yet been accepted by the market, and there has even been a vicious circle in which paper prices do not rise. Electronic media, media and media related to rapid decline, newsprint, coated paper sales fell sharply.

From the 2012 Central "Eight Regulations" to the sale of liquor, the greeting card began, there was a large drop in the wall, which also affected the sales of coated white cardboard, coated paper. At the same time, Chenming Paper, China Paper increased the investment of white cards. In recent years, white paper mills have lost serious overcapacity and product pricing, resulting in a steady decline in prices. At the beginning of 2012, white cardboard suppliers in Shandong, China and South China have repeatedly launched price increases, but white cards have fallen, not prices. On the 1st of 2015, the price of white cardboard continued to fall, and showed a downward trend. By the end of the year, the price of low-grade white cardboard was lower than 4,000 yuan/ton, down 13% year-on-year. Taking coated paper as an example, the price of coated paper in 2008 soared to 7,800 yuan / ton, and has now plummeted to 4,200 yuan / ton, even lower than the price of raw materials.

In the face of a new wave of price increases, uncomfortable more than most paper packaging companies, due to the same overcapacity, paper packaging companies have no bargaining power. Moreover, at a time when the Chinese economy continues to decline, overcapacity is not caused by the collapse of a large number of enterprises. The worry is that this dilemma will lead to more business failures. Therefore, for packaging and printing enterprises, how to improve bargaining power and upstream basic paper producers and downstream customers is the key to ensuring the survival of enterprises. Perhaps, or integrated, or quit, the paper packaging industry is not the choice.

(Original title: White card paper prices rose linearly, some printing companies are worried)