NEWS

With the rising price of paper, the low-carbon economy and environmental protection requirements, the paper packaging industry is becoming more and more competitive. The following analysis of the current market situation of the paper industry in the second half of 2017 is for reference only.

The upstream paper industry market capacity is more centralized

1. Paper enterprises have entered the mid-year maintenance period, and leading enterprises have taken the initiative to stop production to control capacity. It is reported that on June 7, 8 and 9, 2017, China Paper, Chenming Paper and Bohui Paper three major paper giants in response to the national supply-side reform, accelerated to go to production capacity, improve the quality and control of environmental protection policy requirements, take the initiative to open the shutdown program.

2. Supported by raw material waste paper prices, the current shortage of waste paper supplies, some companies are difficult to maintain continuous production.

3. Environmental inspections so that small factories continue to exit, more concentrated capacity.

It is reported that the gross profit margin of paper enterprises is usually 10% -12%. It is estimated that the standard environmental protection equipment investment of about 200 million yuan, the current net profit of 400 yuan per ton, the capacity of 500,000 tons of production line can recover the investment in the first year, which will limit the small paper mill capacity to put.

In such an industry pattern, the downstream paper package plant how affected?

Some industry insiders predict that rising paper prices may continue to the end of this year. Due to the current paper prices rose too high and limited supply of paper, in the long run, some of the secondary plant will not be able to hold out due to lack of capital, and the tertiary plant will be very difficult to implement the price increases, which are industry shuffling, the process of reintegration. Now there are a lot of strength of the large secondary plant are expanding new projects, the number of small orders will gradually reduce, which will accelerate the process of industry reshuffle.

Downstream packaging market competition is fierce

According to the following analysis of the data shows that paper packaging companies by the fluctuation of material prices is more obvious. For example, the listed company Hexing Packaging gross profit margin quarterly data show that: its year-on-year slight decline, the gross profit margin of 15.5% in the first quarter of 2017, a year-on-year decline of 2.1%, the decline in gross profit margin is more due to the raw material boxboard corrugated paper prices rose sharply. Leading enterprises gross profit decline, then the impact of other enterprises can be imagined.

The future development of the paper packaging industry is still facing better development space, but in view of tea, alcohol and other FMCG industry, as well as the courier industry caused by excessive packaging problems, the relevant state departments or will urge the industry leading enterprises through scientific design, resource conservation, curbing over-packaging and waste of resources. This may have an impact on small enterprises or enterprises with inferior quality.

As a paper company, in such a period of industry reshuffle as well as an increasingly competitive environment, how should it develop to face the storm, so as not to be eliminated? How can we not only meet the requirements of low-carbon, but also comply with the trend of green development, in the fierce competition to achieve profit growth?

Expert advice: the application of the Internet to drive the development of the packaging and printing industry

Internet packaging will link all parties in the industry chain to the same platform, information technology, big data, intelligent production will significantly improve operational efficiency, reduce costs, and provide customers with fast and convenient, inexpensive, high-quality integrated services.

Energy saving, remodeling of high energy consumption equipment

As a paper packaging enterprises, should be wide open ideas, from energy saving and reduce consumption, make more efforts. Through appropriate transformation of high energy consumption equipment, change the original production technology level, conditions, improve management level, etc., can effectively save water, electricity and other resources, improve its utilization rate, thus reducing energy consumption expenditure, to achieve the purpose of reducing costs.

Complementary advantages of upstream and downstream industry chain, information sharing

The upstream and downstream industry chain itself is intimate, you have me, I have you, any party in a predicament, will bring devastating blows to the other party. Taking the interests as the starting point, the industry chain should fully realize the complementary advantages and information sharing.

Enterprises, in addition to embracing the warmth of the group, but also according to local conditions, to complement their strengths and weaknesses, and build up the momentum of development. As an enterprise if the long-term perspective, reduce production, rotational training is also a very good way. In addition, reduce management costs, should start from the management of the enterprise, the quality of the enterprise, the full use of their own characteristics to upgrade new products, improve the technological content of products and economic value added.