To protect our environment, China government shut down Connect Chemicals in 2017. It is the world’s largest supplier of leuco dye chemical to produce thermal paper. The shortage of leuco dye leads to global thermal paper shortage and giant price increase at the same time. Till now we are still experiencing paper price increase in 2017 and 2018. It’s very hard to stock enough paper material and the market shows the strong unwillingness to increase price. It’s hard for business.
What will happen in 2019? Will thermal paper price increase continue in 2019?
As the price trend, we can see the price increase hasn’t stopped now. Just see the announcements from major paper mills in the forth quarter in 2018.