Chinese online manufacturers and retailers face higher costs and the shortage of the packaging package is dependent on a further rise in the price of raw cardboard, this news heard already since a year ago, but what influence has it brought to tube packaging box for overseas buyers?
Take a step back to see the origins, since the August 2017, China’s largest producer of wrapping paper has raised the price of its raw paper for four times. With a sharp increase of 70%. To remedy this situation, some retailers have been able to reduce costs by recycling packaging boxes, while most have responded by increasing product prices. According to one insider, there is more than one reason for these adjustments. In particular, the major national paper producers have been heavily indebted by fierce competition, so it is a way for them to reduce debt ratios and boost profits.
It is important to know that, China is making rain and shine on the world pulp market today where it has taken a growing place over the last twenty years to become the first consumer zone. The rising standard of living and the buoyancy of paper and cardboard packaging explain the growth of demand, which is otherwise stable in other regions of the world. The tension of 2017 was amplified during the first three quarters of 2018, especially since the supply was reduced by long-term technical shutdowns on some sites and a delay in the installation of the new capacities in accordance with the new environment protection policies. As a result, prices for raw fibers to make cardboard paper have risen to historic levels throughout 2018.
The situation might have been ended by the August 2018, where in fear of economic falling the government has eased the restrictions that shut down thousands of factories already. However the raw material is still in a relatively high price.
However, customers of our custom tube packaging box can have quite little to worry about that situation. Because of reasons below:
- The price increasing affects very little on high-end custom boxes
It is important to know that we concentrate on high-end and custom tube packaging box solutions only, unlike bulky packaging cartons, these tube packaging boxes are made of many different materials and throughout complicated finishing technics. Comparing with all those raw cardboard paper only takes a very small part of costs and there will be no need to increase the price for that.
- With a tiny MOQ, materials only take very little parts in our cost
We like to offer personalized and flexible offer, which means for some models we can even accept a MOQ of 500 pieces. This will not lead to a massif usage of materials and the difference of cardboard price is not even worthy being noticed.
- Costs can be compensated with better production management
By getting better production management, increasing the producing system and using new technologies, we can even propose better prices than before the level up of raw material price, it can all come from different aspects: reducing waste of materials, increasing worker’s productivity, better system arrangement to cut unnecessary fares, sharpening our design service to bring more added-value to your packages, we hold the faith that our competitively is achieved by our efforts to upgrade with no stopping our production and service system.
In all, you have nothing to worry about the cost increasing of cardboard raw material and it’s more meaningful to concentrate on bringing customers great products with outstanding tube packaging boxes with us.