Normally the paper cost and other raw material cost will be down after Chinese New Year holiday, because the demand will be down when holiday passed, but 2017 is a special, everything still rising and supply still on a shortage.
We received several Cost Rising Notice on 6th, Feb. The first day that we back to work. Some factories even not back to work on 6th, Feb, but still issue the rising notice. It is really a special 2017, so Greatshine Paper has to changes the prices accordingly, we try our best to maintain the cost before the Chinese New Year holiday and thought everything will be better after holiday, but it is not, so we have no choice now except to rise the prices. Meanwhile, the production time of raw material will be longer than before due to our government’s limit production. Due to paper industry is a high pollution industry, so our government cut production by 30-50% from end of 2016, especially for paper board, which is raw material for packaging boxes. Brown boxes need 10-15days, white boxes needs 15-20days normally and sometimes even no enough boxes.
We estimate the rising situation will last in March, so we advise customers to make plans for new orders two months earlier at least to avoid delay, thanks.