On the evening of April 15, CCTV Financial Channel’s “Economic News Network News” “Network Broadcasting Survey” broadcasted a survey column on “Disaster Paper Price Fluctuations”. The CCTV program group went deep into Shandong, a major papermaking province, and interviewed waste paper recyclers, packaging stations, paperboard mills, packaging plants, information companies, and the China Recycling Resource Recycling Association to sort out the recent price fluctuations of waste paper. This is the first report of CCTV's price fluctuations in the paper industry in 2018. Some regret is that there was no interview for papermaking companies in this program.
Part of the interview writing
After the Spring Festival each year is the traditional off-season of the paper industry, the general raw material waste paper prices will fluctuate downward, and this year's paper prices rose sharply in the off-season. At present, the price of paperboard scraps purchased by the paper mills is around 2,550 yuan/ton, which is more than 10% higher than that in mid-February and up nearly 40% from the same period of last year.
At one point in the afternoon, in a waste paper packer factory in Linyi, Shandong, the person in charge of the packaging plant told reporters that the price of paper in the last two months had kept rising. At present, the price of paper grade waste paperboard paper purchased by paper mills has risen from 2,300 yuan per ton in mid-February to 2,550 yuan today. In the first quarter of this year, the average price of used boxboard was 2,299 yuan per ton, which was a year-on-year increase of around 40%.
Shandong Rizhao waste paper recycler Wei Shouchun: We are a falling market after the Spring Festival every year. However, after the Spring Festival this year, we have come back and raised prices.
According to industry analysts, the reason why the price of waste paper rises off-season has a certain relationship with the decline in the volume of imported waste paper. In recent years, China's annual import of waste paper accounted for more than 30% of the domestic papermaking enterprises' waste paper raw materials. Since 2017, China’s requirements for imported waste paper have become stricter. At present, the standard for the import of waste paper has been reduced from the original 1.5% to 0.5%. In January-February this year, China imported 2.51 million tons of waste paper, a year-on-year drop of 46%.
Liu Jian, waste paper market analyst: Because the expectation of a reduction in the supply of waste paper is very strong, it is difficult to say that this mentality of speculation in the current market is difficult to return to a stable state. This large fluctuation in paper prices is inevitable.
Frequent price fluctuations
Traders wait for goods to go up
In the interview, the reporter learned that, despite the current trend of rising waste paper prices, but fluctuations are very frequent, waste paper buyers due to the strong expectations for the reduction of imported waste paper, optimistic about the late price, a large number of recyclers to slow down the pace of taking the goods, The goods will go up.
In Linyi, a waste paper recycling company in Shandong, the person in charge, Bao Baoyuan, told reporters that the current pricing of waste paper is basically controlled by the paper mills. Although the price of waste paper has been rising this year, the fluctuations are very frequent, even It will be adjusted several times within a week.
Zhai Baoyuan said that the frequent ups and downs of prices have increased the operating risks of the recycling companies. Due to the optimistic view of the market price, he also changed the way he sold in the past and began to increase the waste paper inventory. At present, his five packaging companies have altogether More than 2,000 tons of inventory, almost doubled compared to normal inventory.
According to industry analysts, it is a trend to increase the standards for waste paper imports, and recyclers should treat them rationally. To solve the current domestic waste paper prices fluctuate frequently and frequently, the market chaos is basically to establish a sound recycling system of renewable resources.
Tang Yanju, deputy secretary-general of the China Recycling Resource Recycling Association, encourages leading recycling companies to scale and standardize, and the back-end papermaking companies can form an equal negotiation and dialogue mechanism, which can guarantee a long-term stable supply relationship.
Reduced raw materials for orders
Downstream Cardboard Factory Reduces Procurement
The paper mills' purchase of waste paper and competition for raw materials also led to the rise of finished paper prices in the off-season. Taking corrugated paper as an example, the average price in the first quarter of 2018 was 4,084 yuan/ton, which was nearly 6% higher than that in the same period of 2017. As the paperboard and carton packaging industry downstream of the paper mills, the prices of finished finished paper products are rising and the traditional off-season prices are increasing. Pressure began to reduce the purchase of raw paper.
At a cardboard factory in Linyi, Shandong, staff members told reporters that they are currently in a traditional off-season and their orders for the last two months have fallen by around 10%.
As orders fell, the price of raw paper increased, which also increased the pressure on their costs and reduced the purchase of raw paper.
Xu Minghai, Manager of Shandong Linyi Jinghua Packaging Co., Ltd.: We averagely purchase 400 tons of paper every day. Under normal circumstances, we will control 350 tons. If we are busy season, we will consume 370 tons of paper and we will try to purchase 800 yuan. Tons of paper
Mr. Cheng Xizan, Quality Manager of Shandong Rizhao Weimei Packaging Co., Ltd.: Since 70%-80% of our product cost is in this raw material, if the paper mill needs to raise the price, we need to negotiate with the downstream customers the price is acceptable to each other.
People in the industry believe that with the weakening of the willingness of the downstream paperboard factory to take delivery of goods, the shipments of paper mills have dropped significantly, and in the latter half of April, the demand is still in the off-season. There is insufficient incentive for paper prices to continue to rise in the short term.
Tang Yanju, deputy secretary-general of the China Recycling Resource Recycling Association, said that if the price rises to a certain extent, the terminal cannot accept it, then the paper mill may have the pricing power, and it may happen that this collective price adjustment is lowered. .