SunSirs: China Wastepaper and Corrugated Paper is still Declining, with Short-term Fluctuations and Consolidation

According to the monitoring of the commodity market analysis system of SunSirs, there was still a slight decrease in the price of wastepaper in Zhejiang last week. On November 24th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,560 RMB/ton, a decrease of 0.76% compared to the average price of 1,572 RMB/ton on November 19th. The price of corrugated paper has also shown a downward trend. On November 24th, the average ex factory price of 140g corrugated base paper was 2,812 RMB/ton, a decrease of 0.92% compared to the average price of 2,838 RMB/ton on November 19th.

By observing market changes, it can be seen that the prices of wastepaper in Zhejiang Province continued to show a downward trend last week, with the domestic wastepaper market mainly experiencing fluctuations and fluctuations. The current market for yellow cardboard has seen more decline than rise, and paper companies are adjusting the price of wastepaper according to their own needs. However, the shipment from packaging stations is still relatively active, but despite the high inventory performance of paper mills, the demand for wastepaper remains weak. However, in some regions, the operating rate of paper mills has increased, leading to an increase in demand for wastepaper. As a result, the purchase prices of wastepaper across the country have fluctuated.

The price of corrugated base paper is still slightly declining this week, and the current supply side of corrugated paper has sufficient spot quantity, and supply pressure still exists. But on the 20th, a wave of "shouting for price increases" quickly swept through the paper and downstream packaging industry. Various types of packaging paper, such as corrugated paper, kraft cardboard, and white cardboard, have been rumored to increase in price in the near future, with an increase of 50-200 RMB/ton. Although the leading paper mill has issued a price increase letter, most of the second and third factories are mainly wait-and-see, and there is still a slight decrease in prices.

SunSirs paper analysts believe that both the wastepaper and corrugated paper markets are currently weak, but the frequent issuance of price increase letters in recent times has shown a positive trend for the market. With the gradual release of orders during the Spring Festival and New Year's Day, packaging factories may see an increase in demand for corrugated paper. It is expected that the prices of wastepaper and corrugated paper will mainly fluctuate and consolidate in the short term.

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