According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of corrugated paper has shown an upward trend again this week. On December 12th, the average ex factory price of 140g corrugated paper was 2,686 RMB/ton, an increase of 0.67% compared to the average price on December 8th.
In terms of upstream raw materials, the price of waste paper in Zhejiang region still saw a slight increase this week, and the rise in domestic paper mill waste paper prices slowed down. On December 12th, the average purchase price of A-grade waste yellow board paper in Zhejiang region was 1,650 RMB/ton, an increase of 1.23% compared to the average price on December 8th. The current intention of upstream packaging stations in the waste paper market to ship waste paper has partially increased. With the rise in prices, some packaging stations have been more active in shipping, resulting in a slight increase in market supply and an increase in the arrival of waste yellow cardboard from some paper mills. However, the purchase prices of waste paper by leading paper companies have mostly remained stable, leading to an increased wait-and-see atmosphere in the market. Most paper mills choose to remain stable and wait.
On the supply side: The current inventory of corrugated paper is showing a downward trend, making the market supply relatively tight. In addition, the increase in the price of upstream main raw material waste paper is favorable for the operation of raw paper in terms of cost. Multiple bases of large-scale paper mills have once again released their second round of price increase plans, and the attitude of pulling up prices continues, which still has a positive impact on the market trend.
In terms of demand, the transaction center of the corrugated paper market continues to shift upwards, and the scale of paper mills continues to rise. The market is bullish and enthusiastic. However, downstream procurement intentions have diverged, as demand for New Year's Day and Spring Festival gradually releases, and downstream packaging factories along the southeast coast still have orders, so they will replenish their inventory appropriately. However, orders from some cardboard factories in the South China market may weaken in the latter half of the year. Due to the weakening of orders from cardboard factories, there is an expectation of a decrease in demand for finished paper.
The paper analyst of SunSirs believes that with the second increase in the scale of some paper mill bases, the market's attitude towards pulling up prices is relatively clear. However, although the upward trend of the upstream main raw material waste paper has slowed down, it is still at a high level, and the cost support is relatively strong. It is expected that the price of corrugated paper will continue to operate steadily with a moderate to strong trend in the short term.
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