corrugated carton prices to rise 15%
It is possible that the new round of price adjustment this year will depend on the specific situation for a period of time, according to the Malaysian corrugated carton Manufacturers AssociationMCCMA)
Chairman Steve Leow
He said paper prices in the region are up 25% and starch, ink and oil prices are up --
Basic materials for the 1st quarter of this year made it difficult for members of the Association to absorb such high production cost growth.
In the past, we have been trying to absorb these costs, but the paper cost is very high, accounting for about 60% of the production cost of finished corrugated cardboard, which seriously threatens the survival of our enterprise, leleow announced at a press conference yesterday that the price of Subang Jaya has risen.
He said that some MCCMA members operate with very tight margin and many people can no longer afford the cost.
In the current situation, we would be happy if we could achieve a net profit of 3% to 5%.
MCCMA members believe that it is fair for our end customers to work together and allow us to pass on costs by increasing the selling price of the product, he said.
Through its 37 members and 22 associate members, MCCMA has more than 70% of the local corrugated box market.
Its customers are mainly multinational companies and leading local companies that need corrugated cartons for distribution.
More than 40% of Malaysia\'s population
Manufactured products are packed in corrugated boxes and transported around the world.
According to Leow, suppliers in the industry (
Local and Regional Paper Mills)
When producing paper rolls for its corrugated carton manufacturers, it is also difficult to obtain recycled corrugated cardboard.
Last year, the total sales of the corrugated box industry was RMB 1.
5bil, the consumption of corrugated packaging is 750,000 tons.
Leow expects the industry to face a single
Given the uncertainty of the economy and the current rising prices, there has been a decline in the number of digits in sales.
The largest corrugated carton manufacturers in Malaysia include cloud top Sanyan industrial paper Sdn Bhd, Muda Holdings Bhd, Ornapaper Bhd and International
Pacific package Sdn Bhd.