According to the monitoring of the commodity market analysis system of SunSirs, the price of waste paper in Zhejiang region is still showing a downward trend this week. On January 18, 2024, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,558 RMB/ton, a decrease of 1.02% compared to the average price of 1,574 RMB/ton on January 14. The price of corrugated paper continues to decline weakly. On January 18th, the average ex factory price of 140g corrugated base paper was 2,784 RMB/ton, a decrease of 0.71% compared to the average price of 2,804 RMB/ton on January 14th.
By observing market changes, it can be seen that the prices of waste paper in Zhejiang region have been continuously declining this week, with leading paper companies in the domestic waste paper market taking the lead in the decline. The time for the Spring Festival holiday is getting closer and closer, and some downstream packaging and printing companies will gradually take a break from the end of this month. The market's procurement performance for raw materials is weak. In order to reduce the amount of waste paper, the packaging station has increased the transportation volume to the paper mill. Therefore, under the high inventory level of the paper mill, the price of waste paper has been continuously lowered to reduce the amount of waste paper received.
The price of corrugated base paper has continued to decline narrowly, mainly due to the decline in cost and weak demand. After January, paper mills have successively released notices for shutdown and maintenance during the Spring Festival period, mostly concentrated in late January to mid March. The overall industry operating load rate has increased, and the paper mill's shipments are average, with an increasing trend in inventory. However, downstream packaging factories have limited orders and a strong wait-and-see attitude, with multi-dimensional demand for raw paper procurement. However, the expected downward trend in the prices of waste paper, which is the main cost in the upstream, has weakened the support on the cost side.
The paper analyst from SunSirs believes that due to the impact of the Spring Festival holiday, the trading volume in the waste paper and corrugated paper markets may weaken, and the demand may decrease, which is not conducive to price operation. With the continuous increase of paper mill shutdowns, the enthusiasm of paper mills to adjust prices has decreased, and the space for future price reductions is limited. It is expected that the prices of waste paper and corrugated paper will remain weak and stable in the short term.
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