Sanpo-yoshi Communication

A Series of Additional Price Hikes and Supply Restrictions

As we welcome this refreshing season of fresh greenery, the economic environment we face has become even more challenging than it was last month. The escalating tensions in the Middle East are causing unprecedented upheaval in the packaging materials industry.

In my previous column, I had just made the very difficult decision to request significant price adjustments and shipping restrictions for soft packaging materials and other items. However, far from improving, the situation has continued to deteriorate, and we have since seen a series of announcements regarding even more severe price increases.

Specifically, additional price increases for wrapping materials and a significant price revision for trays have already been announced for June; an unprecedented additional price increase for label base paper is set to take effect in July; and a substantial price increase for printing plates has been announced for August. Furthermore, the cost of raw materials for flexible packaging continues to soar, and it is expected that these costs will soon be passed on to product prices. Literally, an unprecedented “wave of price hikes” is expected to continue through this summer.

In addition to pricing issues, the supply-side crisis—specifically the problem of “goods not arriving”—is also becoming more severe. Currently, delays in delivery and supply restrictions have become the norm for all basic packaging and logistics materials, including flexible packaging materials, craft tape, nitrile gloves, PP strapping, cellophane tape, ice packs, and cushioning materials. We take this situation—which could potentially affect our customers’ shipments—very seriously.

The only silver lining in this situation is that, as of now, we have not encountered any major supply issues with the “seals and labels” and “paper containers (paper boxes)” that we manufacture in-house. However, if the current shortage of raw materials continues, we cannot rule out the possibility of being affected at any time or in any way.

I was deeply torn about whether I should share these harsh realities with you again this month, following last month’s update. However, I came to the conclusion that it is precisely during difficult times that it is important to “present the facts openly and share them as soon as possible,” which is why I have decided to put pen to paper once more.

Supply shortages and significant price hikes are critical issues for our customers as well, as they directly impact product pricing and sales plans. We have received numerous urgent inquiries from many customers asking, “Is there anything that can be done?” On the other hand, the prevailing view is that even if the conflict were to end soon, this turmoil is likely to continue for the foreseeable future (six months to a year). That is precisely why we want to share all of our latest timelines with you, so that you can use this information to make informed decisions and prepare for the next steps.

Although the situation remains extremely uncertain, there is one thing we must do. No matter the circumstances, we must utilize every available network to propose alternatives and continue delivering accurate information as quickly as possible—even by a single second—to ensure our customers’ supply chains remain uninterrupted.

We absolutely cannot give up. Suppliers with international connections may be able to provide spot shipments, and in a few cases—though rare—we have been able to produce flexible packaging materials even for new editions when the timing was right. Now is the time to leverage “Marushin’s strengths”—gained through our long-standing relationships with numerous flexible packaging converters across the country—and help overcome this crisis.

We sincerely apologize for having to make a series of serious requests. To overcome this unprecedented crisis together with all of you, we once again pledge to do our utmost to gather and share information and ensure a stable supply.

We apologize for the significant inconvenience and burden this may cause you, but we ask for your understanding of the current difficult circumstances and your cooperation.

Marushin Corporation
Representative Director Yoji Hiraki