SunSirs: China Wastepaper and Corrugated Paper Continue to Decline and will be Weak and Stable in the Short Term

According to the monitoring of the commodity market analysis system of SunSirs, the price of waste paper in Zhejiang Province has maintained a downward trend this week. On January 11, 2024, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,576 RMB/ton, a decrease of 1.75% compared to the average price of 1,604 RMB/ton on January 7. The price of corrugated paper has weakened and declined. On January 11th, the average ex factory price of 140g corrugated base paper was 2,804 RMB/ton, a decrease of 0.64% compared to the average price of 2,822 RMB/ton on January 7th.

By observing market changes, it can be seen that the prices of waste paper in Zhejiang region have remained volatile and downward this week, and the domestic waste paper market prices have also slightly decreased again after stabilizing for a period of time. As the Spring Festival holiday approaches in the current market, paper mills have successively released plans for shutdown and maintenance during the 2024 Spring Festival period. Large scale paper mills in many regions have gradually stopped production and reduced production, resulting in a significant decrease in demand for waste paper. In order to reduce inventory as much as possible before the year, the packaging station has been more proactive in shipping. In a state of oversupply, the paper mill has lowered the price of waste paper due to fluctuations.

The price of corrugated base paper continues to decline. Although large-scale paper mills have released maintenance plans for the 2024 Spring Festival period, the number of downtime and equipment rotation downtime has slightly decreased compared to 2023. Although the successive shutdowns of paper mills will lead to a more relaxed supply of spot goods in the market, the demand side has not increased as expected, and the pattern of oversupply in the market has not changed. This has led to a downward trend in corrugated paper prices to increase shipments and alleviate inventory pressure.

The paper analyst from SunSirs believes that as the Spring Festival holiday approaches, the supply and demand of upstream and downstream products in the paper industry are interdependent. The market's procurement of raw materials is weak, and the cost support for paper prices is insufficient. It is expected that the prices of waste paper and corrugated paper may remain weak and stable in the short term.

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