SunSirs: China Corrugated Paper Price Remains Stable and May Decrease in the Short Term

https://www.chemnet.com   Jul 19,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the price of corrugated paper remained stable this week. On July 18th, the average ex factory price of 140g corrugated paper was 2,610 RMB/ton, which remained stable compared to the average price on July 14th.

In terms of upstream raw materials, the price of waste paper in Zhejiang region has shown an upward trend this week. On July 18th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,491 RMB/ton, an increase of 1.29% compared to the average price on July 14th. With the end of the rainy season, there has been a slight increase in the price of waste paper in the Zhejiang region. Due to the decrease in the inventory of waste paper in paper mills in the early stage, the purchasing of waste paper in paper mills has become more active, resulting in an increase in prices. However, the prices of waste paper in other regions of China are still weak, and some leading paper companies have increased their inventory of waste paper, leading to a decrease in domestic market prices.

Supply side: The current corrugated paper market has sufficient supply, and the prices of finished products from large domestic paper companies have not changed much. The sales and shipping speed of paper companies has not accelerated, and most paper companies have inventory levels at medium to high levels. However, some small and medium-sized paper mills are in a pessimistic state towards future prices, with high pressure on paper mill shipments and actual negotiations, resulting in a low market transaction center and a wait-and-see attitude.

On the demand side: Downstream customers have low enthusiasm for purchasing raw paper, and the consumption rate of raw paper is relatively slow. Under this factor, downstream customers lack confidence in market transactions and are not actively aware of order stocking, resulting in low new order transactions for paper companies and a sluggish market. Therefore, the demand side lacks support for paper prices.

The paper analyst of SunSirs believes that the prices of waste paper in most parts of China are still showing weak downward trend, and there is currently no positive support for paper prices on the cost side. In addition, due to the sluggish market, limited increase in downstream orders, and high inventory pressure on paper companies, it is expected that the price of corrugated paper may decrease in the short term.

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