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Frequent fluctuations in paper prices pose great risks to upstream and downstream companies. In order to stabilize price fluctuations, various links in the industrial chain are also seeking new development models.
Shanying Group is a paper group located in Putian, Fujian Province. Its regional sorting and recycling paper transfer station was established in the second half of 2017. Originally, the paper mills purchased waste papers from all levels of purchasers to the paper mills. This sorting center is a large-scale paper mill that will advance the acquisition and directly dock large supermarkets and other waste paper.
Chen Hao, General Manager of Huanyu Group Huanyu China Operations: We will move this acquisition work to the end customers, and then the supply quality and price of the entire market will form a guarantee to a certain extent.
It is understood that in the past two years, due to the tightening of the import waste paper policy, the paper price fluctuated frequently, which made the paper mill full of a sense of crisis in the procurement of domestic waste paper raw materials. At present, many large-scale papermaking enterprises have established standardized recycling paper sorting and processing centers in many places across the country, effectively gathering surrounding sources of goods, unifying regional recycling paper quality, and stabilizing prices.
Chen Ying, general manager of Shanying Group's China operations: Currently there are 8 in the country. In the first half of next year, the number of transfer stations will be around 12 to 15. The recycling scale of each should be about 20,000 tons per month.
Zhang Xiuhong, the general manager of Zhongnan Renewable Resources Co., Ltd.: This method can solve the problem of concentrated arrival, and can solve the problem of soaring prices and plunging.
In addition, paper companies are also trying to cooperate with downstream packaging companies and large end-user companies to recover industrial-grade recycled paper produced by end users, and to replace the paper cartons in the same amount, with only processing fees from finished paper to packaging.
Tong Yingying, Assistant Chairman of Xiamen Hexing Packaging and Printing Co., Ltd.: Sharing high-quality resources, able to better serve downstream customers and achieve a warming effect, which can better cope with risks.
Tang Yanju, deputy secretary-general of China Recycling Resources Recycling Association: Close cooperation between upstream and downstream to lock in some market price risks, which is also a trend and direction for close cooperation in the supply chain in the future.
As can be seen from the above, compared with previous years, this year's paper market is in a downturn, and the prices of raw paper and waste paper continue to decline. From May to now, the price of waste paper, corrugated paper and cardboard has fallen by 1,000 yuan/ton. Frequent fluctuations in prices have put pressure on upstream and downstream companies in the industry chain.
To this end, many large paper mills are currently building new development models: moving waste paper acquisition forward and directly docking with end users; building regional recycling paper sorting and processing centers... These actions mean that in the future In the industrial chain, upstream and downstream enterprises will adopt a more close cooperation approach to stabilize price fluctuations.