Price trend

According to the data monitoring of SunSirs, the decline of waste paper prices in Zhejiang continued to expand this week. On March 3, the average purchase price of Grade A waste yellow paperboard in Zhejiang was 1,644 RMB/ton, down 3.75% from the average price of 1,708 RMB/ton on February 26. The price of corrugated paper also continued to decline. The average ex-factory price of 140g corrugated base paper on March 3 was 3,106 RMB/ton, down 0.51% from the average price of 3,122 RMB/ton on February 26.

Analysis review

According to the observation of market changes, the price of domestic waste paper continued to decline this week. Due to the increase in the arrival volume of upstream packaging plants, the delivery volume increased significantly compared with the previous period. However, the recovery of paper mill demand was relatively slow, most of the operators were not confident in the future market, and the enthusiasm of downstream stock preparation was not high, leading to the shutdown of the paper mill again. Therefore, the demand for waste paper decreased, and the price of waste paper also declined.

In terms of the price of corrugated base paper, the price maintained a downward trend this week. In order to alleviate the current inventory pressure, the paper mill continued to be affected by the supply and demand pattern of the industry and the changes in cost and price, and the price was downward under pressure. After the Spring Festival, the demand for packaging paper did not meet expectations, and the impact of imported corrugated paper on the domestic market, the price of corrugated paper continued to decline. Subsequently, some bases implemented shutdown and production restriction, which may speed up the consumption of old capacity in the market and play the role of downtime, price protection and cost reduction.

Market outlook

According to the paper analysts of SunSirs, as of March 3, the market operating rate was relatively low, and the waste paper market still had downward pressure. They were pessimistic about the market in the later stage. The demand of the corrugated paper market had no positive performance for the time being. If the old capacity is not used up and the new capacity is added, the paper mill is likely to fall into a game pattern of rising costs and weakening demand. It is expected that the prices of waste paper and corrugated paper will continue to run at a low level in the short term.

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