According to the data monitoring of SunSirs, the decline in the price of waste paper in Zhejiang in September 2022 will not decrease. On September 30, the average purchase price of grade A waste yellowboard in Zhejiang was 1,868 RMB/ ton, a decrease of 9.23% compared with the average price at the beginning of the month (the average market purchase price on September 1 was 2,058 RMB/ ton). The price of corrugated paper also continued to decline. On September 30, the average reference ex factory price of 140g corrugated base paper was 3,284 RMB/ ton, down 1.38% compared with the average price at the beginning of the month (the average ex factory price on September 1 was 3,330 RMB/ ton).

In September, the purchase price of waste paper in Zhejiang Province in China showed a trend of continuous decline. In the traditional peak season, the leading paper enterprises announced a shutdown plan for 30 days at the beginning of September. With limited demand side support, the situation of weak supply and demand in the waste paper market was fully revealed. In the middle of September, Longtou Paper Mill continued to implement the outage maintenance plan, which greatly reduced the demand for waste paper. Due to the impact of typhoon landing in many parts of China, the demand for waste paper from paper mills has been declining due to the continuous rainy weather, which has led to the continuous decline in the price of waste paper.

In late September, after the peak consumption season of the Mid Autumn Festival, there was a significant increase in waste paper for living packaging, which made the packaging station actively shipping waste paper at a high level. However, the downtime of paper mills in many places has not been improved, and the demand for waste paper has not improved. Therefore, the price of waste paper has been continuously lowered to reduce the arrival of waste paper. At the end of the month, the paper mill still focuses on digesting the inventory. Under the declining market, the arrival volume of the paper mill varies. The paper mill mostly adjusts the raw material inventory according to its own needs.

In the first ten days of September, the price of corrugated paper remained stable. Although the bases of large-scale paper mills continued to shut down and the supply declined, due to the epidemic situation in various parts of the country, the market order performance on the Mid Autumn Festival was poor and the market trading atmosphere was light. With the arrival of the Mid Autumn Festival holiday, market supply continued to decrease, terminal demand continued to weaken, and the spread of waste paper decline cost support weakened. The peak season shows a weak situation of supply and demand, which makes the price of corrugated paper stable temporarily, mainly for shipment.

In late September, the price of corrugated paper was stable and declined. With the end of the Mid Autumn Festival order, the specific increment of the market was limited, and the orders for the Double 11 Festival in the later period had not yet been released. The operators were more cautious and focused on just needed procurement. Under the condition of few orders, some paper enterprises introduced preferential policies, which led to the downward adjustment of corrugated paper prices. As the National Day holiday is approaching at the end of the month, downstream packaging enterprises have arranged more shutdowns and holidays, so the demand for base paper has declined, leading to the continuous decline of corrugated paper.

SunSirs paper analysts believe that the operating rate of paper mills around the country is not good from the current trend, the waste paper market is not confident enough, and the industry is mostly wait-and-see. The demand expectation after the National Day holiday may still be poor. In order to actively control the reasonable inventory level, some paper mills have issued the notice of downtime for maintenance during the National Day holiday. It is expected that the prices of waste paper and corrugated paper will remain low and volatile in China in the short term.

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