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Malaysia Will Usher In A New Wave Of Rising Prices Of Raw Paper, Which Is Related To China's Environmental Policy
- May 02, 2018 -

With the advent of the Fourteenth National Election in Malaysia, the paper will usher in a new wave of price increases. Zheng Dongxing, honorary president of the Malaysia Stationery Association Federation, said that the price of paper has increased with the arrival of the national election and the price will change with the arrival of the national general election due to the supply and demand problems.

But when it comes to how to solve the problem of high price of paper, he confessed that there was no way to do it. On the other hand, the Malaysia stationery and Paper Industry Federation issued a paper saying that the factor of paper price factor will continue to rise.

The main factors included in the club include two aspects, one is the tighter source of commodity pulp and the rise of raw material prices; two is the strengthening of environmental management in China, resulting in the closure, shutdown or integration of small and medium paper mills, which makes paper mills low in construction and reduced in stock.

The notice also pointed out that the increase in market demand has also led to soaring prices of paper products and household paper, such as wrapping paper, cultural paper and household paper.

As for the increasing concentration of international wood pulp supply in recent years, it points out that the largest production of pulp and white paper enterprises in the world, mainly from the Indonesian golden light group and the Brazil region, will be exported at least 12 thousand million tons of pulp each year.

However, due to the continuous scarcity of timber, limited supply of raw materials further exacerbated the bargaining power of enterprises. Coupled with the acquisition of Sabah paper mill by India, it has been shut down for 8 months due to India's economic difficulties, and 500 thousand tons of white paper supply has been reduced in 1 years.

The paper said that as the impact of global economic recovery led to more than expected growth of industries, international pulp prices are now entering the boom cycle, and there are no signs of reversal. If the price of raw materials continues to rise, it is difficult for enterprises to digest the pressure of cost rise, and the pressure will eventually turn to the consumer.