In 2017, the sharp increase in the price of packaging paper drove the gross profit rate of packaging papers to increase substantially. Therefore, 2017 was also a good harvest year for packaging paper manufacturers. In 2017, the gross profit rate of corrugated paper increased by 36% year-on-year, and the gross profit rate of boxboard paper increased by 45% year-on-year. The increase in the gross profit rate of boxboard paper was mainly due to the fact that the price fluctuations of boxboard paper products were lower than the frequency of waste paper and corrugated paper price fluctuations. When the market price showed a downward trend, the price of boxboard paper slowed down, so the gross profit margin was higher. . On the other hand, the price of imported waste paper fell sharply from August to October in 2017, and the profit rate of some containerboard companies that still have a certain amount of imported waste paper increased significantly.
In 2017, the gross profit rate of corrugated paper and linerboard increased significantly, and corporate profits were good. The new production capacity will be released at the end of 2017, and the new production capacity will exceed 10 million tons in 2018-2019. In the future, the industry supply-demand relationship will undergo major changes, and the industry risks will increase.
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