SunSirs: China Wastepaper and Corrugated Paper are steadily Rising, with short-term Fluctuations

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of wastepaper in Zhejiang Province continued to rise slightly after the National Day holiday. On October 13th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,588 RMB/ton, an increase of 0.63% compared to the average price of 1,578 RMB/ton on October 1st. The price of corrugated paper has steadily increased. On October 13th, the average ex factory price of 140g corrugated base paper was 2,870 RMB/ton, an increase of 1.06% compared to the average price of 2,840 RMB/ton on October 1st.

By observing market changes, it can be seen that after the National Day holiday, the price of wastepaper has remained stable and fluctuated slightly, and the overall domestic market has shown a slight upward trend. The current upward trend of the raw paper market has a good atmosphere, and the price of wastepaper is showing a trend of rising. In terms of supply, with the end of the National Day holiday, the recycling volume of packaging plants may increase, and the market inventory level is still at a high level. In terms of demand, the production of paper mills has gradually stabilized after the holiday, so more wastepaper is purchased according to demand, and the purchase price of wastepaper is basically adjusted according to one's own needs.

The upward trend of corrugated base paper prices continues after the holiday, and the recent increase in corrugated paper prices is mainly supported by improved market supply and demand relationships and low inventory factors among paper companies. In terms of supply, the operating load rate of upstream paper mills has remained stable, coupled with the recent production of new corrugated paper devices, products have gradually entered the market, and the overall market spot supply has increased. The increase in supply will have a hedging effect on demand growth, forming a certain negative impact on the corrugated paper market. On the demand side, the current inventory of raw paper in downstream packaging factories has increased to a mid to high level. If the follow-up of terminal orders is slow or inventory is mainly consumed, there will be some inhibition on the continued rise of paper prices.

SunSirs paper analysts believe that there is currently positive support in the inventory, policies, demand, and other aspects of paper mills, which is driving up paper prices. However, supply side pressure still exists, and if demand follow-up is too slow, it will hinder the promotion of price increases. Therefore, in the presence of both positive and negative factors, it is expected that the short-term prices of wastepaper and corrugated base paper may be mainly subject to fluctuations and consolidation.

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