With the advent of the 14th Malaysian national election, paper will usher in a new wave of price increases. Zheng Dongxing, Honorary Chairman of the Malaysian Stationery and Book Industry Federation, said that due to supply and demand problems, the paper price has reached a new high at the end of 2017. With the arrival of the national elections, the demand for paper volume increases and the price will also change.
But when it comes to how to solve the problem of high paper prices, he admits that this is no way, so he has to sell expensively. On the other hand, the Malaysian Stationery and Book Industry Federation issued a statement saying that the paper price factor will continue to rise.
The factors mentioned by the association mainly include two aspects: one is the tight supply of commodity pulp, which causes the price of raw materials to rise; the second is that China has strengthened environmental protection management, resulting in the closure, suspension or integration of small and medium-sized paper mills, resulting in low paper mill operating rates , Inventory is reduced.
The notice also pointed out that the increase in market demand has also caused the price of paper products and household paper to skyrocket, such as packaging paper, cultural paper, household paper, etc.
As for the concentration of international wood pulp supply in recent years, the association pointed out that the world's largest producer of pulp and white paper, mainly from Indonesia's Jinguang Group and Brazil, exports at least 120 million tons of pulp each year.
"However, due to the increasing scarcity of wood, the limited raw material supply has further aggravated the bargaining power of enterprises. In addition, after the Sabah paper mill was acquired by India, due to economic difficulties in India, production has been suspended for 8 months, which has been reduced by 500,000 per year Tons of white paper supply. "
The statement said that due to the impact of the global economic recovery, the growth of various industries has exceeded expectations. At present, international pulp prices are entering a prosperous cycle, and the market shows no signs of reversal. The pressure is on consumers.
Information collation: Carton Street
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