Saturday, March 6, 2021

The shortage of “cardboard” materials raises a ton of 1,500 pounds in two weeks

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Paper Division: The import of paper dashboards decreased and the export demand increased

“Perfect Pack”: The suspension of foreign factories enhanced the opportunity for export

The prices of cardboard materials have increased over the past two weeks, and the price of a ton has jumped by 1500 pounds; Coinciding with the decline in the import of dashboards used in the manufacture of brown paper, as well as the increase in export demand for some local types of cardboard.

Engineer Mustafa Obeid, Vice President of the Paper Division in the Chamber of Chemical Industries at the Federation of Industries, said, “There is a shortage of cardboard materials at present, and this has caused an increase in the prices of raw materials in the market.”

“Obaid” added to the “stock market” that the price of a cardboard dish was between 2200 and 2400 pounds per ton two weeks ago, but it has now reached 3700 pounds per ton.

Dasht is the raw materials used in the brown paper industry to manufacture the cardboard boxes needed for packing fruits and vegetables and for packing electrical appliances and equipment.

He continued, “The number of factories producing cardboard has increased, and local raw materials have become insufficient to meet the needs of the factories with the decline in importing dashboards from abroad.

He said that part of cardboard is exported during the current period, and there is a demand for some types of it that have benefited from the high global prices and have become competitive in neighboring countries, unlike in the past.

He added that the price increase also followed the local newspaper, and rose by about 1,000 pounds, an increase in a ton within two weeks.

He mentioned that the final price of carton paper did not increase in the same percentage during the current period, but that these prices may change with the companies running out of current stocks.

Abdel-Rahman El-Marakby, executive director of Perfect Pack for the trade of paper products, said that the prices of local cardboard raw materials increased by approximately 35%, and the price of the “luxury flute” was 6000 pounds per ton, and now approached 8000 pounds per ton. From 5800 pounds to 8500 pounds per ton.

He attributed the main reason for the increase in local paper prices to the frequent rise in the price of “dasht”, noting that a ton of paper is manufactured from about 1.5 tons of dasht.

He explained that another reason for the increase in local paper prices is that some factories export paper. Due to the lack of supply globally due to the Corona crisis and the Christmas holidays, and some foreign factories have stopped maintenance for large periods.

Ahmed Sharara, Chairman of the Taiba Pack Company for the production of cardboard packing materials, said that cardboard paper, including Bakr al-Dasht, witnessed a remarkable increase by about 3,000 pounds over the past few weeks.

“Sharara” explained that the price of a “dish reel” has reached 8,000 pounds now, compared to 5,000 pounds in the past.

He explained that the Chinese market acquired a large proportion of the global supply of “dasht”, part of which was imported annually, and this prompted the manufacture of cardboard from the raw materials available in the local market.

He added that the price increase in the production components will be borne by the final producer, “carton”, by an increase of 30% over the previous prices.

The article, the shortage of “cardboard” materials, raises a ton of 1,500 pounds in two weeks, was written in the Al-Borsa newspaper.

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The shortage of "cardboard" materials raises a ton of 1,500 pounds in two weeks