13.5 million yuan in the hottest 30 days to analyz

30 days, 13.5 million analyze how the paper giant built up the hegemony of waste paper pricing

release date: Source: Tertiary Factory Alliance Views: 1773 copyright and disclaimer

core tip: Introduction: from May 7 to June 6, Taicang Nine Dragons set a record of no price adjustment for a full 30 days. From June 6, the purchase price of Taicang Nine Dragons national waste yellow paperboard increased. From June 6, the purchase price of Taicang Nine Dragons national waste yellow paperboard increased. The prices of Jianiu, face paper, Grade A, grade B remained unchanged, and other paper types increased by 50 yuan/ton. This is the first time that Taicang Nine Dragons has raised its waste paper purchase price since the last round of price adjustment (May 7)

since late May, the price of finished paper has experienced three consecutive rounds of intensive rise. With the rise of base paper price, waste paper also ushered in a good start in June. Taicang nine dragons, who stood at the top of the rise in the price of base paper twice, was unusually "calm" in the price of waste paper - it was not until a few days before the third round of rise in the price of base paper that part of the rise in the price of waste paper was released in a low-key way, which was a false news. The record of no price adjustment for 30 days is particularly prominent in the treacherous waste paper market due to the epidemic in 2020

unconsciously, nine dragons, or the papermaking giant represented by nine dragons, has quietly established the "hegemony" of raw material channels

Qi: the price of rock solid and the amount of waste paper delivered to the factory

on June 1, the connection between Jiangsu and Zhejiang regions should be reliable. The waste paper price of mainstream paper mills increased, led by Changshu Liwen, Zhejiang Shanying and Pinghu Jingxing, and more than 20 paper enterprises increased slightly. According to the feedback of waste paper practitioners, after this price adjustment, the listing price of Taicang Nine Dragons has been lower than that of the surrounding paper mills by 80 yuan/ton

according to public channel information, the latest price adjustment of Jiangsu Taicang Nine Dragons Paper was on May 7. Although the surrounding paper mills have adjusted the price several times, Taicang Nine Dragons has not changed the price, resulting in the listing price of waste paper of Taicang Nine Dragons being lower than that of the surrounding paper mills by 50 yuan for a long time

in contrast, while the listing price has been low for a long time, the amount of waste paper delivered to the factory remains stable

(data source: Carton check)

by retrieving the waste paper arrival data of Taicang nine dragons in the past two weeks, the waste paper arrival volume of Taicang Nine Dragons is stable at more than 300 vehicles. While meeting the daily consumption, there is surplus entering the warehouse as strategic storage

it is said that the amount of waste paper recycling is decreasing, and many waste paper merchants have also stockpiled paper for sale, but why is Taicang Nine Dragons still as stable as a rock

difference: strange response under insufficient waste paper supply

let's first confirm a premise, whether the amount of waste paper recycling is decreasing. For this reason, the recent research data of packaging station commencement were queried

according to the recent survey data of packaging stations across the country, as of late May, about 10% of the country's packaging stations still had a recycling volume of less than 30%, and even brittle materials had great differences in tensile and compressive properties and damage situations. More than half of the packaging stations had less than half of the waste paper recycled in the previous year, and less than 30% had a good recycling situation

considering the rain and busy farming in June, the secondary sources of waste paper are also greatly affected, and the overall recovery of waste paper may further decline. A glimpse of the whole leopard shows that the reduction of waste paper recycling nationwide is not a false proposition

according to the conventional thinking, when a commodity is in short supply, the price should be increased. However, at the beginning of 2020, the paper mills showed people a new "playing method", which triggered selling sentiment through collective price reduction, and then attracted a large number of sales of waste paper in stock. This battle of paper mills collectively using upstream and downstream information asymmetry to make raw materials panic at a tight time can be called a classic in any industry

however, this is a special case caused by the special period of the epidemic. After the waste paper is still insufficient and the waste paper merchants have recovered, the paper mills still have to face the possible price out of control when the supply of waste paper exceeds the demand. When the terminal demand is sluggish and the base paper price is low for a long time, a little rebound in the raw material price may eat up the old capital of the paper mill. So what should we do at this time

broken: catfish enter! The initial layout of waste paper transfer station

if the whole waste paper recycling industry chain is viewed from the perspective of the most basic supply chain, it includes three links: waste paper production source, waste paper middleman, and paper mill. However, the "waste paper middlemen" are a large group. They may be the junk king you see in the community every day, the peddlers who buy waste products full-time in the streets, the garbage recycling station, even the waste paper packaging station, the waste paper dealers... The intermediate chain of waste paper recycling can be very long. The longer the chain and the more levels, the thinner the intermediate profit will be spread

waste paper purchased by the paper mill is sent to the paper mill by the final packaging station or waste paper merchant. However, in the past two years, due to the tightening of waste paper import policy and frequent fluctuations in paper prices, paper mills have a sense of crisis about the purchase of domestic waste paper raw materials. Paper mills began to establish recycling transfer stations across the country to move waste paper to end customers before acquisition

Nine Dragons' recruitment advertisement published on a school recruitment platform

these transit stations rely on the advantages of paper mill end customers, reduce intermediate links, and increase profit margins. Their price competitiveness is generally stronger than general packaging stations

of course, relying solely on transfer stations cannot completely replace other waste paper recyclers at all levels. At present, intermediate recyclers at all levels are still the main force of waste paper recycling. However, Taicang Nine Dragons has introduced competitive factors into this industry, not only allowing middlemen such as transit stations and packaging stations to compete, but also engaging in internal competition between transit stations. And the "value" of this competition we do a positive conversion, according to Taicang Nine Dragons 300 cars per day, 30 tons of waste paper per car, 50 yuan/ton price difference to calculate, its 30 days of direct benefits may be

moreover, it doesn't need to be done well by the packaging station. As long as the transfer station still exists, other middlemen have to pay for its existence

unfortunately, in the period of sharp decline in waste paper recycling and increasingly obvious shortage of national waste, the effect of this routine is bound to last for a long time (from June 6, the purchase price of Taicang Jiulong national waste yellow paperboard will be increased). But even if there is no competitive factor, more sources of waste paper alone can still help paper mills strengthen their advantages over small paper mills through raw material channels