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The reasons for the current price increase are as follows.
- Jun 05, 2018 -

The reasons for the current price increase are as follows.

1, the shortage of waste paper: because the domestic economic situation has not actually improved, the people's willingness to consume is not strong, the total increment of the packaging enterprises in the whole country is less, and the cartons made are not much; then the market consumption is not strong and the waste paper produced is less. According to the introduction of the eagle paper industry, the export quota of China's waste paper has been reduced by 40%. This is a very big data. Most of the large paper mills in China depend on the import of waste paper. Therefore, the reduction of imported waste paper has aggravated the price of waste paper in the market. Hunan's Liuyang area has now improved the craft of making fireworks, and the demand for waste paper has also increased significantly, making the competition of waste paper around Hunan Changsha even more competitive. If there is really a control of us waste quotas, the price of waste paper in the later period is unlikely to fall.

2, Guangdong last year eliminated backward production capacity, closed dozens of nearly 5 million tons of production capacity, at present, there are only about 15 paper enterprises in Guangdong Province, all can not meet the needs of the Guangdong market, and some high-grade paper depends on import. Because of the high cost of production in Guangdong, many manufacturing industries have transferred to Vietnam, Thailand, Burma, India and other countries in Southeast Asia, and there is no paper industry in these countries. So Guangdong, including the coastal provinces, is sold to Southeast Asia with high prices. Normally, Guangdong's base paper is 80~150 yuan / ton higher than that of Hunan, so Guangdong's base paper can't get into Hunan at all.

3, there is no paper industry in Hunan. The only Heng Mountain new dragon produces corrugated paper, and its capacity is very limited. Therefore, the demand for raw paper in Hunan is basically from the outside world.