International waste paper market to seize the price of the first opportunity

Due to the rapid increase in paper demand in China and the rapid development of the paper industry in recent years, the demand for papermaking raw materials continues to increase, including imported waste paper. As a result, Chinese customers have become an important role in the international waste paper market, and the unique procurement methods of Chinese users have repeatedly caused complaints from foreign suppliers. Market analysts often analyze and comment on this. Here is their analysis of the recent waste paper market situation.

When there is a major change in the regional prices of waste paper, especially when the export prices to the Chinese market begin to fall, while the prices of waste paper in North America and Western Europe continue to rise, Chinese waste paper users tend to have a large number of low-priced products. After purchase, stay away from the market for a while. This has happened again in recent months. In this way, the price of wastepaper exports and domestic sales in the United States and Europe are often very different.

Compared with their Western counterparts, Chinese paper companies tend to stockpile waste paper stocks mostly. On the one hand, buying a lot at a low price can reduce costs. On the other hand, because the source of goods is located far away, there is a long delivery time and other risk factors. Therefore, it is necessary to have a huge inventory for guarantee. Another advantage of large stockpiling of stocks is that in the short-term price movements, Chinese users can use their inventory to compete with the increase in waste paper prices. This method of operation enables Chinese users to select orders or stop contracts according to their own needs, thereby forcing waste paper companies to lower prices in order to promote their products in order to stimulate users' purchases.

Chinese users can quickly adapt to sudden changes in the market situation. This is because they and spot paper companies are trading according to spot sales. This brings obvious benefits to Chinese paper companies in terms of price. China Users enter the market when the price is low, and do not buy when the price is high. Such a purchase strategy requires the inventory cycle to be longer and the inventory capacity to be increased so that they have sufficient resilience. Because China's domestic venues and labor costs are relatively low, it is still worthwhile to spend more on these sites.

The secrets of Chinese waste paper users also include choosing various sources of waste paper and expanding the scope of choice to see who has the lowest price, and if the price of waste paper rises in a certain area, users can turn to low-priced supplies. Family. For example, when the export price of waste paper in Western Europe increases, Chinese users will transfer their bows and increase imports from the United States and Japan.

The recent change in the amount of used paper stocks of papermaking companies in China began in the second half of 2002. At that time, they faced an increase in the prices of international waste paper and the closure of ports on the west coast of the United States due to strikes by dock workers. At this time, they delayed their purchases. The transition to their own inventory. It is this important measure that has enabled Chinese users to successfully avoid the rise in waste paper prices in the fourth quarter of 2002. At the beginning of 2003, when the international waste paper declined, China’s domestic stocks were also at a low level, so they purchased large quantities at low prices, resulting in a considerable amount of waste paper stocks. Such ample stock can then be used. The next round of waste paper prices will rise.

The same is true. When the inventory in the hands of Chinese users continued to rise in the first quarter of this year and the export price of waste paper on the global market rose rapidly, Chinese users faced rising prices and the demand turned weak. They immediately decided to clear inventory, and thus China The inventory held by users has contributed to the decline in the price of the international waste paper market in the second quarter of this year.

For their own benefit, Chinese users have used their relatively large inventory and various sources of supply to cope with the rapid changes in the international market. However, as China's domestic paper production capacity for waste paper is used as a raw material to further increase, the cost of shipping has increased. And most of Western European countries and Japanese waste papers are turned into domestic ones. This procurement strategy for Chinese users will gradually lose their advantage. They may adjust their purchasing strategies or purchase time.