Soaring shipping costs hit cardboard import! How China's Waste Ban impact on global paper packaging industry?

Global trade trends and interactions between economies are one of the factors that have led to some structural market changes occurring on a global scale, and China is at the center of this topic in many respects. In the past few decades, China's influence as a global trading partner has been unparalleled. Specifically, China's waste paper import ban has structurally completely changed the global flow of waste corrugated cardboard boxes OCC, and has formed a new global investment "hot spot" in the cardboard industry.

Waste paper import ban reshapes the global paper industry chain

In 2020, China's paper and paperboard output will reach 127MM MT, an increase of 0.8% over 2019. This capacity expansion was mainly driven by the demand of the containerboard market and accounted for more than 60% of the newly added capacity in Asia. China, India, and Malaysia are the top three countries for investment in paper and paperboard capacity in 2020, and their new capacity will be 8MM MT, 1.8MM MT and 0.5MM MT, respectively, as shown in the figure below.

China's New Investments in Paper/Paperboard

 

In 2017, China implemented the policy of a waste paper import ban, which began to affect the global waste paper import and export market. This new policy has also begun to reshape the entire paper industry chain from waste paper recyclers to paper manufacturers in Asia, America and Europe. China implemented this ban to protect environmental resources and citizens' health from high pollution caused by poor quality waste paper.

Importance of Product Packaging

In this era of commodity boom, we're just too familiar with various product packaging boxes, as they're so ubiquitous in our daily life. But it comes to our own businesses, some may not know well about the role of product packaging.  Here in this article we're going to explain the importance of packaging!

What's the Importance of Product Packaging?

• Function of packaging

There are two main functions of packaging: one is the natural function, that is, to protects the product. the other is the social function, to acts as a media for the product to be displayed to consumers. More specifically, the functions of product packaging are explained below:

(1) Protection and Holding

Protecting and holding the goods is the most basic function of products packaging. The diversity of packaged items determines that they have a variety of contents and shapes, either solid, liquid, powder or cream, etc. All commodities, whatever they are made of, they have to go through many logistic processes such as handling, storage, loading and unloading before they finally reach the consumers. During the whole circulation, they are subject to different degrees of damage such as collision, squeeze, damp, corrosion and so on. 

Therefore, how to keep the goods in good condition and minimize all kinds of losses is the first consideration of all manufacturers. Such functions include: preventing vibration, squeezing or impact; keep a stable state of temperature and/or humidity; prevent external contamination; keep items from light or radiation; prevent acid and alkali corrosion; prevent volatilization or leakage.