Since June 2020, domestic bulk commodities have continued to rise, of which paper prices have risen by 50%. Before and after the Spring Festival, especially since March, the price increase of mainstream packaging and cultural paper including white cardboard, coated paper, and double offset paper has suddenly increased, from the original increase of three to five hundred yuan to 1,000 yuan. , Or even 2,000 yuan. After this round of violence, the ton price of white cardboard, which was already at a historical high, broke through the 10,000 yuan mark, setting a new record high; the ton price of coated paper and offset paper also reached a relatively high level.

In Our Chairman Lee's view, there is no problem that cannot be overcome. In the past 2020, faced with various pressures brought by the epidemic, all members of the ML Packaging team worked together to overcome the difficulties and actively resumed work and production, ensuring the completion of production tasks. With the joint efforts of the whole company, the sales performance of MLP in 2020 has achieved double growth and achieved contrarian growth.

However, after we has just overcome the epidemic, has to face the problem of rising paper prices, which is a common problem faced by the entire industry. "In 2021, the biggest difficulty we will encounter is the uncertainty caused by rising paper prices."

Paper cost is the most important cost for printing and packaging companies, and it is absolutely dominant. In the short term, with such a rapid and substantial price increase, it is difficult for the pressure of price increase to be transmitted to the downstream quickly. It is optimistic that only 20% of customers can accept small product price adjustments. Printing companies are in a dilemma of default and loss. Profits have been wiped out and the loss of the industry has expanded, leading to a serious survival crisis for enterprises, which can easily lead to a wave of losses and bankruptcies in the industry.

Paper prices are rising so fiercely, how should printing companies respond?

In this regard, Minglai Packaging Factory's strategy is to resolve the pressure caused by rising paper prices through refined management and cost control.

Precaution is also a commonplace issue. Our company has effectively resolved the problem through adequate material preparation. Similarly, because of sufficient material preparation, the impact of paper prices on us has not yet been fully revealed.

"But if the future continues to rise like this, it will be a very big challenge not only for us, but also for the entire industry." as per our chairman Lee said.

   At the same time, importing paper from overseas channels is also an effective way to maintain the stability of paper prices.

   "We have also established very extensive contacts with overseas paper mills. At present, 30% of our paper is imported from overseas."

   "Although the price of paper in overseas channels is also rising, it is still cheaper than in China, and so far, it is at least 15%-20% cheaper than in China."

"We believe that the paper price will likely fall in the third quarter." However, our Chariman Lee said that even if the paper price pulls back, it is impossible to return to the original low point. It will hover at a relatively high point, which will cause a temporary The high level of sex has stabilized. This may be a necessary "breathing" after the high rise, or it may be the paper mills assessing the market's acceptance of this wave of sharp price increases. As for the future trend of paper prices, Luo Xianfeng feels that it will depend more on the market game between the supply and demand sides.

No matter how the market change. You can trust us with top quality packaging service at cheaper price.