Since this year, paper price are climbing, quickly like springing up. Take white cardboard as an example, before the end of 2016, the price is in 5600 RMB per ton up and down, as of mid July of 2017, paper price is reach 6900 RMB per ton, increase 20% compare with 2016. Combined with various reasons, the major factor are the following three points.
1. The chain effect of rising raw material prices: AOCC price keep growing, such as AOCC 3 (blue line) from 107.5 USD/T last year to 198.5 USD/T January this year, AOCC number 11 price is almost at unified track, increase rate is more than 80%. And waste paper from Japan, European, etc is keep growing too.
2. Production capacity and environmental protection policy: With the development of economy and to protect environment, some small paper mills are gradually being eliminated, paper supply to speed up tightening.
3. Printing and other downstream business needs driven season: In the end of one year, paper’s price is almost can reach highest, and it also related to market demand, such as students book printing, etc.