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3 reasons make paper material price rasing all over the world
- Nov 01, 2017 -

Why kraft paper bag price rising all the time since last October? Let me show you the reasons.

In china, all the paper products price is rising because of manufacture cost increasing, import paper material price go up, exchange rate changable, labor cost and so on. 

Paper bag price rising is just small part of global market, but it still has huge influence cause of china strong demand. And some analysis institution predict that, with China Shopping Festival coming at November 11th and Christmas Day coming, the paper bag along with paper material will keep rising.

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According to the China Paper Manufacture Association released "China Paper Industry 2016 Annual Report", 2016 paper and paperboard imports 2 million 970 thousand tons, Increasing 3.48% compare with last year, exports 7 million 330 thousand tons, Increasing of 13.64% compare with last year; Imports of 120 thousand tons of paper products, paper products of the previous year, exports of 2 million 910 thousand tons, an increase of 2.46% over the previous year. Among them, only newsprint, packaging paper, cardboard boxes, corrugated paper imports more than exports.


It is not limited to Chinese factors to promote the price rise of overseas paper market. The price of major raw materials (especially recycled paper and coal) has risen since last year, and many overseas paper companies have also chosen to raise their prices.


At the end of 2016, the world's largest paper manufacturer of American International Paper (IP), Brazil pulp and paper manufacturer Suzano Pulp& Paper company, packaging paper producer Smel Kappa of France (Smurfit Kappa), office supplies manufacturer Portugal Navigator company, as well as coating office paper, packaging paper and specialty paper manufacturer Sappi (Europe), etc. the main products are paper group, announced an increase in price.

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IBIS World, a market research firm in the United States, believes that a big factor driving the price of paper is that paper supply cannot keep up with the demand for paper packaging products. And the demand for paper packaging continues to grow, driven by the following three factors:


Consumer spending increases


One of the factors that affect this trend is the improvement of economic activity, encouraging more enterprises to start or expand their business, increase the number of recruiters, and create more jobs. In the next two years, the unemployment rate is expected to remain stable, economic confidence increases, consumer spending further increases, consumer goods are usually packaged in paper transportation, resulting in increased demand.


E-commerce growth


The growth of broadband Internet connection and mobile Internet connection will further promote e-commerce sales. The use of smart phones and tablet PCs increases the speed of e-commerce purchases and further increases the packaging requirements for online purchases of various products.


Growing industrial production


By 2019, industrial production indices, such as mining, manufacturing, electricity and natural gas, will continue to rise. The growth of industrial activities and commercial activities is expected to boost demand for paper packaging products.

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