High paper prices hurt printers’ profits
High paper prices hurt printers’ profits
The price for different kinds of paper has soared in the last few months, affecting turnover at printers and publishers.
The price for printing paper is around VND17.5-18.5 million (US$768-812) a tonne, an increase of VND1.5-2.5 million ($65-110) compared to the end of last year.
Writing pads have risen in price from VND19.5 million ($856) since mid-February to VND23.5-24 million ($1,032-1,054) a tonne.
Duong Chi Thanh, deputy general director of Vinh Tien Joint Stock Company, said paper prices were soaring because raw materials were being imported at high prices.
Many Chinese companies are buying large quantities of raw paper materials and paper products, leading to a shortage and rising prices.
“Some paper importers said the price would continue to rise, especially in the harvest season,” Thanh said.
Packaging producers said that rising prices had also affected the price of paper rolls since the end of last year.
Experts said that prices in many countries had risen because many countries had restricted paper production for environmental reasons.
Around 10 years ago, the Chinese government closed a number of paper and pulp mills, causing a shortage of 10 million tonnes of paper a year, Han Vinh Quang, former president of the Viet Nam Pulp and Paper Association, said.
In the first four months of the year, Viet Nam imported about 465,000 tonnes of paper, a year-on-year increase of five per cent. Imported paper products are mainly high-quality packaging paper, paper napkins and printing paper.
At the same time, domestic enterprises exported 187,000 tonnes of paper, around 400 per cent over the same period last year.
Last year, Viet Nam imported $2.5 billion worth of paper and paper products, including $600 million from China.
