What are the reasons behind Jiulong's market iron

What are the reasons behind the market iron rule of "Nine Dragons will rise when the price rises"

release date: Source: Packaging Industry Alliance

in recent years, with the continuous improvement of industrial concentration, the voice of leading enterprises in the industry has also been continuously improved, and their ability to control market prices has also been continuously enhanced. There is often a situation that one leading enterprise increases prices, leading the whole market to increase prices one after another

today's paper price market has formed the iron law of "Nine Dragons rise in price, cardboard will rise"

today's paper price market has formed the iron law of "Nine Dragons rise in price, cardboard will rise". From secondary factories to tertiary factories, the price direction of the whole industry chain focuses on Nine Dragons' every move

every time Nine Dragons announces a price increase, it is bound to ignite the price increase sentiment of the whole market and affect the trading status of the whole industry from the secondary plant to the tertiary plant. (2) according to the task conditions and effect nature of the friction pair. Just as nine dragons rose three times in one wave after the national day, each wave of price rise attracted the price rise letters of the paperboard factory

let's take a look at the rise in the price of paperboard in Ningbo, Zhejiang Province. The packaging industry in Ningbo, which sits on the largest port in China, Zhoushan Beilun port, is extremely developed, and its price trend of paperboard has always been concerned by the outside world. Just after the national day, more than 30 cardboard factories in East China issued price increase letters and fired the first shot in October, covering Ningbo, Jiaxing, Huzhou, Suzhou and other places. Subsequently, the paperboard factories led by Zhejiang in East China successfully linked the price rise for many times

there are no more than two reasons behind it:

nine dragons as the head 5) variable measurement of metal material outer diameter, variable pitch and variable steel wire diameter (3) suspension measurement of metal materials realizes non molding processing paper and plays an important role in promoting the development of new material industry. Every move of enterprises can cause an uproar in the whole industry market and even lead to the panic of downstream factories in the industry. Why? There are no more than two reasons behind it:

first, with the continuous development and growth of nine dragons, they continue to expand production capacity and improve market share. Naturally, they form a monopoly on the upstream market to a certain extent, so their voice in the downstream market is also highly concentrated and their influence is very strong, which leads to the market phenomenon of "Nine Dragons move the world and nine dragons bear it when they don't move"

Second, as for the phenomenon that nine dragons' price rise affects the market, there is a view in the industry that there is a large factory staff group or analysis team represented by nine dragons in the market. Relying on strong market resources and data analysis ability, nine dragons manipulates the price of the subsequent market every time Nine Dragons' price rise or fall, so that the market price change conforms to nine dragons' price change to a certain extent. Through this specific market phenomenon, The price rise of Nine Dragons is related to the price rise of nine dragons

of course, it is difficult to give an exact answer to the second speculation circulating in the industry

is there a staff group behind Nine Dragons guiding the market? Does the change of market situation really have data to rely on? If so, what parameters are these data based on and where are they derived from? Is the market judgment made by the back team based on the current voice of the enterprise, or based on factual data analysis

How can downstream factories take the initiative in the face of every "leading price rise"

in the face of the price dynamics of the whole market determined by leading enterprises such as nine dragons, the voice of downstream secondary and tertiary plants has been continuously weakened. In the face of each "leading price rise", secondary and tertiary plants seem helpless. How can downstream plants break this situation and take the initiative? Using market data to break the information gap may be the key

imagine that if the industry can have a data or index report to well reflect the market situation and price fluctuations, and the downstream factories can make effective predictions according to the data report, I believe that the secondary and tertiary factories can be more confident in the face of the price adjustment measures of the head paper enterprises

is it possible to present a more open and transparent market data in the future? Is it possible to form an index report based on this data to clear the fog of market price and adjust the direction correctly? I believe that the downstream factories can break the information gap with the head paper enterprises through such an open and transparent index report in the future, and have their own voice and initiative in the market