The domestic prices of paper in China continue to increase because of undersupply in raw materials. This is impacting the manufacturers of paper products such as packaging boxes online as they have to deal with the higher costs.
Out of the 80 manufacturers of paper in China, 71 of them decided to increase the prices of their products between 50 and 300 yuan for every ton. This is according to the bids they have sent on waste paper from 8th of September until the 10th.
Xuzhou Ronghang Paper Industry Co which is located in Jiangsu Province in the eastern part of China said that they are planning to increase the price of their high strength type of corrugated paper cartons to around 300 yuan for every ton.
Another company located in Hebel Province in the northern part of China, Baoding Sanlian Paper Industry Co, said that they are increasing their prices as well.
Ever since November of last year, there has been an increase in the process of paper from domestic suppliers. The rate of the increase is rapid as the shopping festival called Singles’ Day gets nearer. It will be celebrated on the 11th of November. During the sales event, logistics are expecting around 1 billion deliveries all over China.
When compared to plastic bags, cartons are preferred during shipping because of it provides better protection. This is also the number one choice among e-commerce businesses. This is one of the reasons why the costs eventually started to increase.
The higher costs of boxes is directly impacting e-commerce and trades who are selling products such as toys, cosmetics and appliances since these are items that require carton for shipping.
According to Lily Wu who is a jewellery designer and seller residing in Shanghai, she purchases all her packaging materials from online shops and her products are sold via the WeChat application.
She said that the usual small boxes she buys used to cost 0.29 yuan each but now it cost her 0.44 each. This will not affect those who are purchasing packaging boxes online in small quantities but the effect will be surely felt by those who are shipping hundreds of parcels daily.