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There Are Many Reasons Why The Paper Box Factory Cannot Survive.
Apr 06, 2018

From 2016 to now, a series of changes caused by the rising price of original paper are gradually changing the pattern of carton packaging industry.

Affected, while a cardboard-box factory will face three problems: high raw material prices lead to money is tight, industry continued to deepen development lead to fierce competition, the economic situation at home and abroad can cause carton purchasing volume growth is slowing.

High raw material prices have led to tight funding.

Since the second half of 2016, base paper prices at a relatively smooth running situation, former days there was substantial, paper mill profitable during this period, from 2016, 2017, each big mill published results, a lot of mill's net profit rose by more than 100%.

Price pressure, the price of cardboard is also rising.

It has become a common method in paperboard factory in recent years.

Although the paper box factory also benefited directly from the price, but still faced with the problem of capital shortage:

1. The status of the paper box factory is relatively weak, the bargaining power is not strong, and it is difficult to transfer the price pressure rapidly in a short time when the raw material price increases sharply.

2, many small and medium-sized cardboard-box factory and terminal enterprise's goods, after the first deposit first shipment after filling money way of trading, however, as the raw material price instability, terminal enterprise cost pressure, of payment default become a common phenomenon.

Judging from the recent actions of leading paper factories, the price of original paper will still be the mainstream of the market in 2018. Therefore, there will inevitably be a lot of paper box factories facing financial constraints.

The industry continues to deepen the development of the fierce competition.

As the industry continues to deepen, the relationship between the upper and lower reaches is becoming increasingly blurred.

The paper mill, represented by nine dragons, eagles and rongcheng, has become more and more obvious to the cardboard and carton.

This will gradually shake off the simple paper making money in the market - a single mode of expansion, thus forming a three-dimensional integrated supply system and price system.

In the future, perhaps the most needed for these paper mills is the carton terminal demand customer.

Only by mastering the box client terminal, can we truly master the market, and can more accurately allocate the production capacity, so as to make the development of the industry more consistent with the future development direction of the whole manufacturing industry.

At the same time, the paperboard factory is also gradually getting rid of the single processing board pattern.

The most obvious evidence is that in 2017, in the packaging market represented by the pearl river delta region, many paperboard factories will increase the purchase of carton processing equipment and deepen the processing of the cartons.

In the face of deepening board factory, paper mill and layout, carton packaging market will usher in a more fierce competition, strength and a cardboard-box factory and was relatively small, capital is relatively insufficient, difficult to compete with these companies directly.

For example, in November 2017, there are some paper box factories in eastern China, and many orders have been taken from the first and second plants.

The domestic and foreign economic situation may lead to the growth of the purchase volume of the carton slowdown.

In 2018, it is the year that the whole market reform continues to deepen. As a subsidiary industry of manufacturing industry, the overall purchasing quantity of the carton industry may decline.

1. With the decline of low-end manufacturing exports in China and the expansion of the sino-us trade game, the decline in the export volume of carton exports will inevitably decrease.

2. The domestic manufacturing industry is transferred to foreign countries due to a number of factors, and the consumption of cartons will be reduced.

3. Replace the use of cartons in the new form of packaging, such as the research and development of Shared packing cases and the replacement of the five-layer box with lightweight honeycomb boxes;

4. Large e-commerce enterprises are constantly developing substitutes for cartons, and the national government is advocating the reduction of packaging and recycling, which will inevitably slow the growth of carton usage.

Based on the above reasons, it can be seen that in 2018, there will be a slowdown in the overall purchasing quantity of cartons.

This is not good news for the carton factory.

Although only from the current situation, these three problems will not quickly form a qualitative change, but after a long period of fermentation, it will inevitably have a great impact on the existing carton industry pattern.

In addition to environmental pressure, "labor shortage" and many other factors, the paper box factory in the development process, obviously is bearing load.


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