SunSirs: White Cardboard and White Board Continued to Decline in May, with Short-term Low Consolidation

According to the monitoring of the commodity market analysis system of SunSirs, the prices of white cardboard and gray background white board paper were still in a downward trend in May. On May 29th, the average market price of 230g-400g white cardboard in China was 4,503.33 RMB/ton, a decrease of 2.24% compared to the average market price of 4,606.67 RMB/ton on May 1st. On May 29th, the average market price of 250g white board paper in China was 3,749 RMB/ton, a decrease of 2.6% compared to the average market price of 3,849 RMB/ton on May 1st.

White cardboard prices fell first and then stabilized in May

By observing market changes, it can be seen that the white cardboard market prices remained in a downward trend in early May. In terms of supply, in May, paper mills may adjust their production line structure or shut down production to ease shipping pressure. However, due to the gradual transfer of inventory from paper mills to traders, there is a more obvious oversupply situation in the market. In terms of demand, the market is still in the off-season of demand, and the progress of market supply digestion needs to be observed. In addition, there may be a seasonal decline in orders or inventory, which temporarily lacks positive support for the market, so prices continue to decline.

In late May, the price of white cardboard stopped falling and stabilized. White cardboard is in the traditional off-season of the papermaking industry, with slow recovery of terminal demand and weak orders. Business owners lack confidence in the future market, and the market price of white cardboard continues to consolidate within a certain range. In addition, the increase in raw material cost cannot effectively transmit to the raw paper and its terminals, and the pressure on the supply side of raw paper still exists. Therefore, the market is temporarily in a wait-and-see state, and prices are relatively stable.

The price of gray background white board continued to decline in May

By observing market changes, it can be seen that in early May, the price of domestic gray background white board fluctuated and declined. After the May Day holiday, the holiday effect weakened, and downstream rigid replenishment demand declined. The gray background white board market entered the traditional off-season of demand, coupled with the continuous weakening of raw material waste paper prices, resulting in weaker cost support. Against the backdrop of seasonal weakening of downstream demand, the weight of downstream price pressure purchasing has increased, enhancing the downward pressure on white board prices.

In late May, the price of gray background white board paper temporarily stabilized, and the market is still in the off-season of consumption. The recovery of terminal demand is slow, orders are weak, and businesses lack confidence in the future. In addition, the prices of raw materials and waste paper are relatively weak, and cost support is relatively weak. Due to the continuous weakening of prices in the early stage, prices have been in a state of digestion recently, so they are temporarily stable and wait-and-see.

According to paper analysts from SunSirs, in May, both white cardboard and white board paper were in the traditional off-season of market consumption, with insufficient terminal order volume and many distributors lacking stocking intentions. Downstream on-demand procurement was the main focus, and market demand may be difficult to improve in the short term, resulting in weak market profits. With the paper mills controlling production and stabilizing the market as the main focus, it is more cautious to continue to lower paper prices. It is expected that in the short term, the prices of white cardboard and gray background white board paper will consolidate at a low level.

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