How big is the impact of raw material price fluctuations on the self-adhesive coated paper market?

The impact of raw material price fluctuations on the self-adhesive coated paper market is significant, mainly reflected in the following aspects:

First, the impact of production costs

One of the main raw materials of self-adhesive coated paper is pulp, and the price fluctuation of pulp will directly affect the production cost. When the price of pulp rises, the raw material procurement cost of production enterprises increases, which pushes up the production cost of self-adhesive coated paper. In order to maintain the profit level, enterprises may choose to increase the price of products, which will directly affect the supply and demand relationship in the market and the purchase cost of consumers.

Second, fluctuations in market prices

Fluctuations in raw material prices will be transmitted to the market price of self-adhesive coated paper. When production costs rise, companies tend to raise product prices in order to maintain profitability. Such price increases could trigger a chain reaction in the market, including dealers adjusting inventory and consumers changing purchasing behavior. At the same time, if a number of companies raise prices at the same time, it may further exacerbate market price volatility.

Third, the change of enterprise competitiveness

Fluctuations in raw material prices can also affect the competitiveness of companies. For enterprises with strong cost control ability, they can maintain relatively stable production costs and market prices when raw material prices fluctuate, so as to maintain or enhance market competitiveness. For enterprises with weak cost control ability, they may face the risk of rising costs, falling profits and even losses, which will affect the survival and development of enterprises.

Fourth, changes in the market demand and supply relationship

Fluctuations in raw material prices also affect market demand and supply relations. When the price of raw materials rises, if the price of the product fails to pass through the increase in time, it may cause the production enterprise to reduce production or find substitutes, which will affect the market supply. At the same time, rising prices may also cause consumers to reduce purchases or look for alternatives, thus affecting market demand. This change in the relationship between supply and demand will further exacerbate the volatility of market prices.

Fifth, analysis of specific cases

Taking 2024 as an example, the continuous rise in pulp prices has brought greater cost pressure to paper enterprises. According to relevant reports, in order to ease the cost pressure, some domestic paper enterprises have repeatedly issued price increase letters to increase product prices. However, due to factors such as fierce market competition and changes in consumer demand, price transmission is not smooth. This shows that the impact of raw material price fluctuations on the self-adhesive coated paper market is complex and far-reaching.

In summary, the impact of raw material price fluctuations on the self-adhesive coated paper market is significant, involving production costs, market prices, enterprise competitiveness, market demand and supply relations and many other aspects. Therefore, production enterprises need to pay close attention to the changing trend of raw material prices and take corresponding measures to deal with the challenges brought by it.