SunSirs: China Corrugated Paper Market is Stable and Medium High in October

https://www.chemnet.com   Oct 31,2024 SunSirs

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of corrugated paper remained stable with slight fluctuations in October, with a slight increase in price. On October 30th, the average ex factory price of 140g corrugated paper was 2,604 RMB/ton, an increase of 0.39% compared to the average price of 2,594 RMB/ton on October 1st.

In terms of upstream raw materials: In October, the price of waste paper in Zhejiang region fluctuated downward, while domestic waste paper prices fluctuated. On October 30th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,503 RMB/ton, a decrease of 2.59% compared to the average price on October 1st. The National Day holiday in early October led to an increase in the supply of waste yellow cardboard, resulting in a slight increase in the amount of waste paper collected by domestic recycling stations. As a result, some paper mills received more goods, leading to a decrease in the price of waste paper from paper mills after the holiday. Surrounding paper mills also experienced a decline. In mid to late October, with the increase in the arrival of waste yellow cardboard from most paper mills, the purchase price of waste paper from paper mills was appropriately lowered, dragging down the market price of waste yellow cardboard. As the end of the month approaches, paper mills often adjust the price of waste paper according to their own needs, resulting in a fluctuating trend in waste paper prices.

On the supply side: After the National Day holiday in early October, the trading situation in the corrugated paper market was good, and the process of paper companies destocking was relatively smooth. Most paper mills had a high enthusiasm for price increases, which helped to slightly increase market prices. Subsequently, due to the resumption of production on the shutdown production line, the market supply may increase, and downstream packaging factories will mostly follow up with the purchase of raw materials, resulting in a stable price operation in the market during the consolidation stage.

In late October, the inventory of enterprises decreased slightly, but the new orders received by paper mills were average. The market still needs time to digest the increase, and there is an expectation of an increase in supply and inventory. After issuing price increase notices at multiple bases of large-scale paper mills towards the end of the month, some small and medium-sized paper mills followed suit, but most paper mills are still in a wait-and-see state.

On the demand side: Prior to the National Day holiday, multiple bases of large-scale paper mills announced plans for post holiday price increases. Driven by the atmosphere of shouting for price increases, downstream packaging factories are replenishing their inventory at low prices and adding a moderate amount of raw paper inventory, resulting in an increase in market trading activity. After the holiday, driven by large-scale paper mills, most small and medium-sized paper mills saw their prices rise, helping to shift the focus of market transactions slightly upward. But as downstream markets replenish their inventory appropriately, market demand gradually stabilizes. As the end of the month approaches, leading paper mills are once again receiving price increase notices, but paper packaging companies are still in a state of first-time purchase, and both upstream and downstream of corrugated paper are observing the implementation of price increases.

The paper analyst from SunSirs believes that the current mainstream of the corrugated paper market remains stable, and there may be a slight increase in corrugated paper prices in some areas. The downstream market maintains a demand based purchasing state. Recently, there have been frequent price increase letters from large-scale paper companies, and the market is mostly observing the implementation of price increases. It is expected that the price of corrugated raw paper will be adjusted according to the market trend in the short term.

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