Why did the paper cigarette box mill shut down and announce the price increase at the same time?
Under the current stalemate situation of low-level cigarette box market operation, paper cgarette box mills are facing multiple pressures from sales, inventory, and profits and have no good countermeasures. Most of them adopt a combination strategy of shutting down, increasing raw paper cigarette box, and reducing waste paper cigarette box or concurrent use.
As the saying goes, no opportunity creates opportunities, which is the basic idea of the current overall cigarette box price adjustment.
Announcing the cigarette box shutdown alone will cause further bearish sentiment in the market!
It is difficult to convince the cigarette box market that the cigarette box price increase can really be implemented by announcing the price increase alone!
When the downtime and cigarette box price increase are announced at the same time, the market will believe that the price increase can be implemented because of the downtime.
The direct pressure of shutdown is the high inventory of paper cigarette box mills. Under the current situation of unsmooth sales, shutdown has become the most direct and effective way to reduce cigarette box inventory.
On the one hand, the price increase is to make up for the loss of profits, and on the other hand, it is to exaggerate the bullish trend of the market in the future, and to cater to the market psychology of “buying up and not buying down” to “force” the cigarette box downstream to increase cigarette box procurement, further accelerate the speed of shipments and reduce cigarette box inventory , to shorten the downtime period by reducing inventory.
The overall market in the second quarter of this year is basically “the paper cigarette box price hovers at a low level and fluctuates slightly back and forth.”
Post time: Apr-18-2023
