Manufacturers and online retailers are facing higher costs and shortage of packaging boxes owing to another rise of paper prices, Workers’ Daily reported on Oct. 9.

Since last August, the largest packaging paper producer raised the price of its raw paper for the fourth time on Sept. 11. The price has increased sharply by 70 percent.

To reduce the pressure, some retailers managed to lower costs by recycling the packaging boxes, while most responded to the rise by increasing product prices.

There is more than one cause for these price adjustments, according to an insider.

Major domestic paper producers have been highly indebted due to fierce competition, so it is a way for them to lower debt ratios and boost profits.

But raw materials for paper depend heavily on imports. Yuan depreciation has lead to an increase of cost since 2016. Moreover, the paper industry is now undergoing a period of deep change as a result of stricter environmental protection and logistics standards.

It’s too early to say if higher prices will eliminate over packaging in China, said a package producer with over 20 years’ experience, because packaging depends on consumer preferences too.