SunSirs: Corrugated Paper Prices Remain Stable in China

https://www.chemnet.com   Sep 06,2024 SunSirs

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of corrugated paper has remained stable this week. On September 5th, the average ex factory price of 140g corrugated paper was 2,610 RMB/ton, which remained stable compared to the average price on September 1st.

In terms of upstream raw materials, the price of waste paper in Zhejiang region slightly increased this week, but some paper mills across the country have lowered their prices, and most of them are operating steadily. On September 5th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1519 RMB/ton, an increase of 0.4% compared to the average price on September 1st. At present, paper mills in various regions adjust the price of waste paper according to their own needs. With the end of Mid Autumn Festival stocking, the pressure on finished paper inventory of paper enterprises has increased. In addition, the flat demand for finished paper may put pressure on the intention of paper mills to start production, which is not conducive to expanding the consumption of waste yellow cardboard.

In terms of supply, currently, the sales and shipment speed of paper companies is slowing down, and most paper companies have high inventory levels, resulting in average market supply. However, the policies of large-scale paper mills have fluctuated, and the focus of transactions in the region has adjusted in different directions. Most paper mills in other regions remain stable and observe, and the trading atmosphere is average. Under the influence of this factor, downstream customers lack confidence in market transactions and are not actively aware of order stocking, resulting in fewer new orders and a flat market.

In terms of demand, due to insufficient follow-up of new orders from downstream packaging factories and doubts about future demand increments, there is a pressing need to follow up on raw paper procurement, resulting in insufficient support on the demand side. In addition, the corrugated paper inventory of various paper companies is relatively high, and there is little room for further demand to increase, so the prices of various paper companies are in a stable trend.

The paper analyst from SunSirs believes that as the Mid Autumn Festival and National Day holidays approach, the market stocking situation is basically coming to an end, and downstream customer orders will not increase too much. Due to the high inventory pressure of various paper companies, the market supply and demand have entered a game state, and it is expected that the short-term corrugated paper price will be mainly observed.

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