According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of wastepaper in the Zhejiang region of China continued to decline in July. On July 31st, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,508 RMB/ton, a decrease of 4.68% compared to the average price of 1,582 RMB/ton on July 1st. The price of corrugated paper continues to decline. On July 31st, the average ex factory price of 140g corrugated base paper was 2,660 RMB/ton, a decrease of 4.32% compared to the average price of 2,780 RMB/ton on July 1st.

By observing market changes, it can be seen that the domestic wastepaper market continued to decline in early July, and the decline continued to increase. Due to the high temperature weather in various parts of China, paper shell packaging for beverages is constantly increasing. The end of the e-commerce festival in the middle of the year has led to a continuous increase in express packaging, which has led to a continuous increase in the amount of wastepaper arriving at the packaging station. Affected by the decline in paper prices, the stock of raw paper in paper mills is relatively high, so wastepaper is mainly purchased on demand, leading to a weak and lower price of wastepaper. With the oversupply of the waste market, especially the wastepaper market, leading to fierce competition, prices continue to decline.

Although the decline in wastepaper prices slowed down in late July, they continued to decline. The recycling volume of the packaging plant continues to improve with the arrival of summer, and the inventory of wastepaper continues to increase compared to the previous period. At present, downstream finished paper has entered the off-season of the industry, and the market demand is insufficient. Distributors often restock according to orders, with market demand being mainly in demand. Due to the drag of finished paper, the price of wastepaper continues to decline.

From the observation of market changes, the corrugated paper price continued to decline in the first ten days of July. As the paper prices of two major bases of Nine Dragons Paper Holdings Limited were lowered at the end of June, the second and third grade paper mills in the market followed suit. Due to insufficient market demand and long-term decline in paper prices, the domestic paper industry is moving forward with a heavy burden. Subsequently, the downward trend in the corrugated paper market continued, as the significant decrease in raw material wastepaper prices led to a decline in the cost of corrugated paper.

In late July, the price of corrugated paper maintained a downward trend. With the supply side of corrugated paper still being released, the pessimistic expectation of the industrial chain under the expectation of overcapacity spread, causing the price of corrugated paper to fluctuate and decline. The continued weak demand in the downstream market is also the main factor contributing to the price decline. Since July, leading paper mills have released multiple rounds of price cuts, which have affected the price of corrugated base paper by the industry's supply and demand pattern and cost price changes. Some paper mills have implemented quantitative preferential policies for shipments, resulting in a continued weak market trading atmosphere.

SunSirs paper analysts believe that both the wastepaper and corrugated paper markets are currently in a downward channel, and due to the mutual transmission effect of upstream and downstream products, both the wastepaper and corrugated base paper markets have formed a certain negative trend. In addition, due to the lack of positive feedback in the market, some companies are still lowering their prices, and it is expected that the prices of wastepaper and corrugated paper may be weak in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.