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China: Recycled paper prices rise 185%, driving up costs of fruit packaging
Recycled paper (made directly from waste paper) has had stable prices over the recent years, but since November, 2016, the prices have shot up. This caused an increase in prices of paper boxes made of recycled paper and thus drove up the packaging cost for fruit growers.
1. The price of recycled paper has grown by 185% compared to the same month last year.
2. The price of fruit packing boxes has grown by 50% compared to the same month last year.
The latest data shows the price of a carton box (e.g. standard ones used for fruits sold at e-commerce platforms) is 3.6 yuan, which is 0.2 yuan (6.06%) higher than that of 10, September, 0.4 yuan (12.5%) higher than August and 1.2 yuan (50%) higher than the same period last year.
3. Increased prices of carton boxes have resulted in higher sales cost of fruits.
Causes of the increased price and market prediction
According to industry experts, greater demand, lower output and insufficient stock are the main factors causing such changes in price. The market price of paper started to rise in September, 2006, partially because of the new policy from the government to get rid of production facilities with low productivity. In the meantime, due to stricter environmental regulations, some companies which failed to meet new standards were forced to shut down. With the large consumption volume from the last quarter of this year around the corner, there will be a greater demand for packaging paper. Thus the market price of paper will stay high for the months to come.
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Source: Fruit Service Center
Publication date: 10/2/2017
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