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Some Manufacturers Earn Money By Hoarding Goods While The Paper Price Is Soaring, But The Price Increases Are Not Enough
- May 17, 2018 -

Recently, Zhejiang online reporter on the field interview a paper trader Xu Yongjun (pseudonym), he said, recently bought paper by robbing, and because of the recent two years of paper price rises, there are paper traders to Shandong to rent production lines to produce paper. Xu Yongjun held a negative attitude towards the surge in the price of the paper. He believed that the domestic paper price surge forced many manufacturers to move abroad to buy paper. The market supply chain was changing, and the demand was limited, and the price rise was not sustainable.

Recently, in the circle of paper business, there is a popular saying: speculation is not as good as fried paper. But it's not easy to get a share in the price surge.

Xu Yongjun (pseudonym), engaged in the middle of paper trade for more than 20 years, to do is to take goods from various paper factories to the downstream production enterprises, the industry is called "two companies". In recent two years, in Xu Yongjun's words, "when business is best done, it is also the most difficult time to do".

Do it well, because as long as you have paper in hand, you are not afraid to sell it; it is hard to do it, because you do not necessarily get paper in your pocket.

Xu Yongjun told an online journalist in Zhejiang about the story he had recently bought for paper and paper.

Paper traders: warehouse hoarding goods, more than one day is lying to earn money.

I mainly do white paper, that is the kind of paper used to make business cards, invitations, and candy bags. From the end of 2016 to now, the overall price has risen 50%~60%, which is the best market in the last 10 years. Arguably, May and June is the low season for paper business, and it is the peak season after September. But during this period, the notice of price adjustment in paper mills has hardly been broken. After 20 years of paper business, I met for the first time.

In the past, the price rises were also in the market. Generally, they would fall for a few months or more. This has lasted for nearly two years, and has barely risen.

You say business is hard. I made two or three million dollars a year last year. I didn't make a lot of money because I didn't eat it. People have warehouses to hoard goods, and they spend more time lying in bed to earn more money. If you say business is good, I can basically receive weekly notices of increasing prices in paper mills. I can't get the money if I get more than three times a week.

To what extent do you grab the goods?

So let's say, before we took the goods basically "brush your face", old customers say hello, how much to say in advance, the delivery of 30% money, even paper factory first to you to pay, one or two months to settle all. Not now. You can't get 30% or even 50% of the money in advance. You must pay for everything by hand. Some two companies want to card nodes, step on the paper factory on the eve of the price adjustment, you think that you are very stable, the result of the order of goods more than the quantity of delivery, and other turns to send your goods, this price has risen again. So now we get all the goods, not all the money can not grab the paper.

Paper prices skyrocketing and tight supply. Hangzhou "two vendors" run Shandong to rent production lines and produce their own products.

The price of paper raw material rises, the ordinary consumer feels not obvious. In fact, the retail price has also risen by one or two hairy, but we don't pay much attention to it. From the base number, this is not a small increase.

The most obvious evidence is the financial report, you see, last year's reports of all the paper mills, the profits are very high. There are people in the industry to return the price of this wave to the paper factory. I hope the country will control it. I am very much in favor of the business. In the past few years, the profits of paper mills were not as thin as paper, and they had been criticized for making them a little normal in the past two years. If a business can only lose money, who else will do it? In fact, since the second half of 2016, almost all commodities have been rising, and paper is one of them, because it was too weak before, so it seemed a little "unmanageable".

In fact, some time ago, there were "two sets of traders" in Hangzhou who had already joined the small and medium-sized paper mills in Shandong to rent their production lines and made their own paper. The capacity of small and medium paper mills is not so large, they rent production lines, provide pulp channels, two plates of their own production, their own distribution, in this way, although the selection of paper varieties and specifications is relatively small, but the paper prices themselves can be controlled, relatively stable, not to see the face color of others, is also a way of no means.

Printing plants sell equipment, paper traders reduce inventories, and prices rise later.

Will this price rise? We are also discussing these days. I am not optimistic about it, because the supply chain of the market is changing.

The friends around me are divided into two dials. A set of printing business, from the beginning of last year has been in land and land continued to sell equipment, they received many foreign orders, global bidding, the cost of rising is your problem, Party A will not accept your offer, and foreign paper raw materials did not increase substantially, that is to say the same order, your competitors pick up. You can make money, and if you make more of it, you will lose it. The demand for printing factories has been reduced, and price increases have been weak. The other one, like me, did paper business. Last year, he made a fortune in stockpiling, and this year he did not dare to hoard.

I have just rented a warehouse of more than 2000 square meters. Recently, the price of white cardboard has dropped a little, and the money of hoarding has not been made, but it has lost 200 thousand. But the next order I ordered foreign paper factory goods, because now the price of white cardboard in the market has been hung upside down, the white card paper imported from abroad, even with the other miscellaneous fees, and other miscellaneous expenses, the final cost is 20% cheaper than the domestic paper factory, the only shortage is that you need to do the cutting. Like me such a lot of sales, or fast forward fast out good, more capital turnover, the final profit is not quite different from their stock in fact, the risk is still small.