Discussion on the Reasons for the Decline of Waste Paper Price in Tongshan, Hubei Province

Tongshan County, Hubei Province is located at the junction of Hubei and Jiangxi provinces, with convenient water and land transportation. In the past few years, there were more than a dozen small and medium-sized waste paper processing enterprises in Tongshan, and the supply of waste paper materials was often in short supply. In addition, customers in Jiangsu, Zhejiang and other countries rushed to buy at high prices, so local waste paper processing companies had to buy at high prices, otherwise There is no raw material but the relevant doors are discontinued. In recent years, some waste paper recycling departments have seen waste paper prices rise and are profitable. They have all purchased from other provinces and transferred to Tongshan. In addition, with the development of the urban and rural economy and the improvement of people’s daily lives, the majority of urban and rural residents have continuously increased the number of household daily necessities. Therefore, waste paper cartons and other types of waste paper have also increased.

Unexpectedly, the waste paper market has changed rapidly, because the price of foreign waste paper has fallen, and the amount of local waste paper has increased, and the price has been declining since the previous year. Some customers who originally signed purchase contracts with recycling units unilaterally terminated the contract due to various reasons, and no longer purchase goods. At the time, these recycling departments thought that there was a possibility that the price of recycled paper might rebound. The goods were temporarily stored in the warehouse, and they hoped to wait until the prices were stable before selling them. However, the price of waste paper did not drop. Over the past year, the waste paper processing enterprises in Tongshan had to shut down and stop production due to the low price and high cost of cartons, coupled with the backwardness of technical equipment and the relatively low-grade production packaging boxes. As a result, the waste paper market became more saturated, and there was a huge backlog of waste paper stocks in Tongshan. Waste paper buyers were helpless and had to cut prices to find a market.

According to the author's understanding from several recycling departments, there are currently a large number of waste paper boxes accumulated in warehouses, and there are more than a dozen township recycling stations. A person in charge of the recycling department told the author that the original price of these waste papers was 1,250 yuan per ton, and then fell to 750 yuan per ton. Sales are still very difficult. They are prepared to sell at the original purchase price, but no buyers have yet been found. He told the author that the sale at the original price is indeed a lot of losses, because to pay the freight, storage fees, taxes, etc., but do not sell backlog of funds, can not be turnover, and then the current market is difficult to see hope, so can only reluctantly flesh.

Tongshan is a famous county with abundant Kiwifruit and citrus fruit in Hubei Province. The original fruit went on the market. The wholesale market was full of cartons. Now we use woven plastic bags, because the plastic bags are only a few cents each and can guarantee the quality of the fruit. Short-distance transport has little effect on the fruit, but it also costs a few dollars for each of the low-end cartons. Therefore, even in the previous years, customers in Jiangsu, Shanghai, and Zhejiang stipulated that transporting kiwifruit from Tongshan had to be transported in hard packaging. Now there is no cartons. Because most of the original transport used cars, and now the majority of ships shipped, one is that the current highway checkpoints check too much, charge more, and two are currently busy highways, often traffic jams, so these customers are mostly converted routes using shipping, so Plastic bags have little effect on kiwifruit.

Nowadays, the largest amount of packaging cartons is electrical goods and the demand is limited. Demand for cartons fell, and the chain reaction to the consumption of waste paper, the price of waste paper also had to drop. According to the author's understanding, the current purchase price of Tongshan waste paper, waste Packaging Box 400 yuan per ton, other waste paper prices lower, and very strict quality acceptance, there are some individual recycle bin due to waste paper backlog, can not find the buyer had to close Stop the acquisition.

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