Packaging paper enterprises alliance to solve the problem of plywood
on one side is the soaring raw material prices, on the other side is the low-cost competition in the industry. 70 paper enterprises in Fuyang, Zhejiang Province, which are in the "plywood dilemma", have jointly raised their prices. With the response of paper enterprises in Guangdong and other places, the price of packaging paper such as whiteboard and kraft linerboard has been increased by 100 to 300 yuan per ton. Different from other industries, the price alliance formed by 70 whiteboard enterprises in Fuyang City, Zhejiang Province to defend their interests has not been resisted by buyers, but also has an invincible development momentum
on April 2, the "hometown of Whiteboard in China" - the whiteboard enterprises in Fuyang, Zhejiang Province jointly raised prices again. This is the third price increase of Fuyang paper enterprise price alliance in three months. Surprisingly, instead of losing customers, the local revenue increased by nearly 30million yuan. This means that the disorderly competition situation of Fuyang paper's malicious price reduction for a long time has finally been solved
under this influence, 14 leading enterprises producing Kraft linerboard in Fuyang also reached a consensus to increase the original price by 100 yuan/ton. Fuyang kraft liner paper enterprises explained this move as: "as the main raw material of the paper industry, the price of imported waste paper, which is well-known by paper enterprises, has increased by nearly 300 yuan/ton. In addition to the increase in the costs of other raw materials and pollution control costs, the survival of enterprises is facing great challenges and has to rise."
the explanation of Fuyang whiteboard enterprises is more straightforward: "it is to break the disorderly competition by means of price reduction." For a long time, the high concentration of industries has made local enterprises compete at low prices for the right to exist, which has suppressed profits to the limit, and even some small enterprises sacrifice product quality to ensure profits
four months ago, Guangdong Paper Association also sent a written letter to Fuyang paper Association. In the letter, it was said that it was hoped that Fuyang could communicate with Guangdong in advance when it was preparing to raise the price, and they would also take action. In fact, the price increase of Fuyang whiteboard enterprises has affected many packaging paper production areas such as Dongguan, Guangdong and Pujiang, Zhejiang, and the price of similar paper in the local market has also increased by 100 yuan/ton
"joint efforts" has also become a consensus in the industry. "Although the product price increase system will automatically enter the overload protection, breaking the bottleneck of raw materials and protecting the paper companies as a sharp tool to deal with the rise of raw materials, the competition in this field is very fierce. If a paper manufacturer raises prices without authorization, it is easy to be abandoned by the market." Said a senior person in the industry. In his view, it is the strong export of China's manufacturing industry that drives the market demand for packaging paper, thus giving suppliers the initiative to raise prices. However, in order to increase competitiveness, export enterprises also put forward higher requirements for the quality and aesthetics of packaging. Therefore, the upgrading of packaging paper industry has become inevitable. "Jointly raising prices is just the first step of the whole upgrade."
price alliance breaks the disorderly competition pattern
the person made the above judgment based on that, as an important papermaking town in Zhejiang and even the whole country, Fuyang has more than 350 papermaking enterprises. Previously, in order to survive, enterprises maliciously reduced prices, and some even reduced the price of Fuyang's flagship product whiteboard to 2000 yuan/ton. This is half lower than the average price of 4000 yuan/ton of peripheral competitive enterprises such as Ningbo, Jiangsu and Shandong. "In this case, only by jointly defending price interests can we strive for a reasonable living space."
in addition to the factors of the industry itself, packaging paper enterprises are eager to improve their own technology and break through the internal demand of raw material constraints, which also makes it a general trend for enterprises to form a price alliance
at present, in the domestic market, the packaging paper is mainly white card, white board, box board and corrugated paper, with a low profit margin, but it has a small profit but a quick turnover in the market. Yang Jing, the boss of Yunlong paper industry in Dongguan, Guangdong Province, explained, "in order to enhance competitiveness, China's export enterprises also put forward higher requirements for the quality and aesthetics of packaging. This also requires packaging paper manufacturers to eliminate the original low-level packaging paper production technology."
Yang Jing said, "with the formation of the price alliance, production enterprises are expected to stop 'shopping at low prices'. Once the price competition is eased, the pressure faced by enterprises is expected to be eased. The recovery of profits also provides a guarantee for the improvement of product quality and grade, the improvement of production technology, and the optimization of business model."
for Fuyang packaging paper industry, after three price increases, the selling price of class a white board is 250 to 300 yuan higher than before, with more than 300 tons shipped every day, and 20 or 30 customers rush to compete for stock paper... This set of statistics is the biggest driving force for the alliance
Fuyang paper's alliance
in the price rise triggered by Fuyang paper, "alliance" has become the most noticeable force
as mentioned above, at present, the output of whiteboard of 70 paper-making enterprises in the price alliance accounts for 70% of the local production, while the output of Whiteboard in Fuyang accounts for one half of the national output. The output of 14 production enterprises that contributed to the rise in the price of kraft linerboard also accounted for 70% of Fuyang City. Obviously, compared with "fighting alone", joint forces can counter the fierce competition in the industry
"those enterprises that violate the resolutions of the alliance will be deprived of all the concessions granted by Fuyang municipal government." Fuyang paper Association clearly pointed out in the notice. This is regarded by Chen tongcai, a regional economic expert, as an important measure to defend the price alliance. He analyzed that in 2006, 41 PS version manufacturers across the country also signed a price increase agreement, but after signing, with its high durability and easy protection, due to the lack of supervision mechanism and restrictive measures, few manufacturers really fully implemented the minutes of the meeting, and the entire "price alliance" was completely disintegrated, or never established at all
at the same time, these 70 paper-making enterprises, on the one hand, expanded their economic strength before comprehensive upgrading, on the other hand, began to accelerate their development. A few days ago, a boss of Fuyang paper enterprise who once wanted to change production because he couldn't afford low-cost competition told him definitely that he would not change production. Taking advantage of the price rise, he plans to upgrade the equipment after sufficient funds
in addition, 14 Kraft linerboard manufacturers have also sent price adjustment notices to their customers. Kraft paper manufacturers all said that the current price is only temporary. According to the changes in market conditions, the possibility of raising prices again in the future cannot be ruled out
the fate of price alliance
in the face of the strong market demand and optimistic expectations of enterprises after the price rise, experts sounded an alarm for packaging paper enterprises. Experts pointed out that price increases are not always "a rise in the spirit.". To solve the fundamental problem of the development of packaging paper industry, enterprises also need to take technology as a breakthrough and get rid of the shackles of upstream raw materials
this is true. It is reported that at the "paper order fair" held in Beijing, the head of procurement in China of Iran's BOMAB company once said: "I feel that the quotation of Chinese enterprises is much higher than that of last year. Although the quotation of Chinese companies is 2/3 of that of foreign companies, the quality is only 2/3 of that of others. Therefore, if the domestic price is too high, the company may consider purchasing from other places."
reprinted from: consumption