Packaging Industry Cooperative "Emergency Response to Corrugated Base Paper Supply Shortage"

Request to Refrain from Price Increases in the Paper and Corrugated Packaging Industry

Corrugated cardboard

[Asia Economy Reporter Kim Daeseop] The Korea Corrugated Packaging Industry Cooperative announced on the 14th that it has requested the paper and corrugated packaging industries to refrain from sudden price hikes and speculative demand for corrugated base paper.

This request follows the suspension of production at Daeyang Paper Industrial Ansan Plant, which accounts for about 7.0% of domestic corrugated base paper production, due to a fire on the 12th. The Corrugated Packaging Industry Cooperative predicts that serious disruptions will occur in raw material supply for small and medium-sized corrugated packaging companies.

Due to the production halt caused by the fire at Daeyang Paper Industrial Ansan Plant, it is expected that about 400,000 tons of corrugated base paper will be reduced annually, raising concerns about pressure for price increases, according to the Corrugated Packaging Industry Cooperative.

The Corrugated Packaging Industry Cooperative has urgently established an emergency response team to overcome management difficulties caused by a chain reaction of price increases triggered by raw material shortages. If raw material price hikes are unavoidable, they plan to request the reflection of delivery price adjustments linked to subcontracting laws and consider requesting adjustments through the cooperative if necessary.

Kim Jin-moo, Executive Director of the Corrugated Packaging Industry Cooperative, expressed concern, saying, "This emergency situation occurred at a time when the volume of waste paper imports sharply decreased following the Ministry of Environment's implementation of the waste paper import reporting system in July, causing significant pressure for price increases due to a shortage of domestic waste paper inventory, and price increase notifications from the corrugated base paper industry are anticipated."

He added, "Since supply disruptions are expected in the corrugated base paper industry, we urge restraint in exporting corrugated base paper and thorough efforts to establish a predictable supply system to prevent discriminatory transactions based on transaction scale. If supply imbalances are neglected, we are also considering legal measures to enforce fair transactions under the Fair Trade Act."

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