Carton Industry

With paper prices and express deliveries soaring, how should the carton packaging industry develop?

People in the paper packaging industry know that the price of paper has risen recently, so what is the next trend of the carton packaging industry?

1. Is the carton packaging market’s future affirmative？

The rapid increase in express delivery business has also led some express companies to accelerate the pace of "green transformation”. According to statistics, the green recycling boxes of Cainiao Network and the express company are expected to recycle hundreds of millions of express cartons each year, reducing carbon emissions equivalent to planting 740,000 Haloxylon trees. 

At the same time, paper prices have risen sharply recently, under this circumstance, what will carton companies concern?

2. Will "exploratory" price increasing usher in a period of high profits?

The second half of the year is the traditional peak season for paper industry, and the demand for various types of paper will more or less usher in a certain rebound. However, in recent years, things have gone differently. The continuous expansion of paper-making capacity has changed the supply-side contraction trend since the supply-side reform, which has greatly reflected the change in the supply and demand pattern. When the market supply exceeds demand, the increase in paper prices is bound to be restricted. 

The current paper price has naturally risen with the market’s performance, but compared with previous years, the increase this year is not large. Therefore, paper companies are tentatively raising prices, and are very uncertain about the future market trends.

How will downstream demand perform, result of inventory clearance of papermaking enterprises, may affect the next trend of paper prices.

3. Demand for carton related machinery is upgraded

As end users' demands for cartons and the number of express delivery has increased significantly, the corresponding demands for carton packaging machinery has also increased. From back-end carton packaging system designed for automatic producing line of large enterprises, to automatic carton sealing and strapping equipment. Not only the quantity of demands is increasing, but the requirements for these kinds of carton packaging machineries are also getting higher and higher, such as the supported dimensions, the degree of automation, and efficiency. How to choose high-quality brands and equipment is also a content that needs to be carefully considered for carton terminal consumption. Good equipment bring not only an increase in efficiency, but also great improvements in management and cost.