After going through last year's paper prices, the owners of major carton factories must have already exercised a heart of diamonds. To tell the truth, these days are really difficult. The days when people cannot afford to buy the original papers are simply unbearable. However, people in the industry recently stated that the production capacity of corrugated paper market has greatly increased. Most small and medium-sized paper mills in the country have started to cut prices. The second half of the year should be the time when corrugated paper production capacity is released. It is very difficult for prices to rise again.
The corrugated paper market is so tempting that cardboard and newsprint machines have been remodeled to make tiles.
In the second half of last year, the carton industry encountered a “rising price crisis†that was rare for ten years. The prices of main raw materials, waste yellow and paperboard, and coal continued to increase. The state increased efforts to strengthen environmental management and cut capacity. Domestic corrugated paper companies frequently stopped production, etc. For a variety of reasons, the price of corrugated paper has soared. This also made everyone see the huge demand of the corrugated paper market. Some people in the industry said that many paper mills have started to transform the production lines for cardboard and newsprint into corrugated paper, and many have begun to expand production capacity and increase corrugated paper stocks.
For example, China Metallurgical Paper Galaxy Co., Ltd. successfully converted the 35# paper machine into low-heavy corrugated paper on December 9, 2016, and the subsequent 34# paper machine will also change the production of low-weight corrugated paper. Some 300,000 tons of high-gross corrugated paper production capacity, the company will increase the total capacity of corrugated paper to 420,000 tons!
For another example, in November 2016, in order to meet the needs of the market, Huatai Paper's original newsprint machine 11 was changed to corrugated paper. In fact, as early as 2015, Huatai has already begun to transform a newsprint production line into a corrugated paper production line with an annual output of 400,000 tons. At present, Huatai has an annual output of at least 800,000 tons of corrugated medium.
Corrugated paper production capacity will be released in the second half of the year, or end of the boxboard production capacity will be released
At the beginning of the year, the major paper mills were shut down for overhaul, production capacity was curbed, and low inventory led to a rise in paper prices at the beginning of the year. However, some analysts also stated that with the increase in production capacity of major paper mills, including new corrugated paper projects, over time, corrugated paper will be released in a large area in the second half of the year and linerboard will follow suit. , perhaps at the end of the year, will also get a larger capacity release!
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