Struggling and Survival of Containerboard Corrugated Paper Industry

Struggling and Survival of Containerboard Corrugated Paper Industry
Looking around, cardboard shells are everywhere.
The most commonly used corrugated paper is the corrugated cardboard. However, in the past two years, the price of corrugated cardboard has fluctuated more obviously. Picking up garbage and collecting waste has also been praised by young people as “a bad ideal life”. A cardboard shell may be really valuable.
With the increasing awareness of environmental protection, the promulgation of the “banning and abolition order”, and the continuous festivals, the price of corrugated boxboard has been diving. In recent years, corrugated boxboard has been in an unstable state, especially in the fourth quarter of each year. The increase is mainly due to the large number of festivals during this time period and the strong downstream demand.
A few days ago, the mainstream price of corrugated paper in the boxboard market was mainly down.
The “cardboard box” that is no longer needed?
The price of container board corrugated paper continued to fall, putting the entire industry into a downturn.
Data from the National Bureau of Statistics shows that since mid-April, the average price of cardboard has dropped from 3,812.5 yuan to 35,589 yuan in mid-July.
Yuan, and there is no sign of bottoming out, on July 29, more than 130 packaging paper companies across the country lowered their paper prices. Since the beginning of July, the five major bases of Nine Dragons Paper, Shanying Paper, Liwen Paper, Fujian Liansheng and other large-scale paper companies have successively implemented price reductions of 50-100 yuan / ton for the price of corrugated paper.
As the industry leaders have cut prices one after another, many small and medium-sized enterprises have to cut prices, and the market price reduction atmosphere is difficult to change for a while. In fact, fluctuations in the price of corrugated board are common occurrences. Judging from the sales situation in the market, there are very bright off-seasons and peak seasons, which obviously have a direct relationship with downstream demand.
In the short term, the downstream market is in a weak state, and corporate inventories are in a state of overflowing. In order to stimulate the enthusiasm of downstream companies to buy goods, price reduction may also be a last resort. At present, the inventory pressure of major leading companies continues to rise. According to short-term data, the output of corrugated paper from June to July was 3.56 million tons, an increase of 11.19% over the same period last year. The supply of base paper is sufficient, but the downstream demand is weak, so it is bad for the corrugated paper market.
This has also caused some paper companies to experience losses, and it is a fatal blow to many small companies. However, the industry attributes determine that small and medium-sized enterprises cannot raise prices on their own, and can only follow the leading enterprises to drop again and again. The compression of profits has caused many small and medium-sized enterprises to be eliminated from the market or forced to close down. Of course, the announcement of downtime by leading companies is also a compromise in disguised form. It is reported that companies may resume production at the end of August to welcome the relative prosperity of the industry.
Weak downstream demand has an intuitive impact on the price of container board corrugated paper. In addition, the cost side and the supply side have an impact on the price of container board corrugated paper. This year’s “wave of downtime” may also be related to higher cost pressures and declining profitability. Obviously, the continuous price reduction has led to a series of chain reactions.
There are various signs that the paper mill is not a prosperous industry, and it has worsened in the past two years.