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SunSirs: Waste Paper and Corrugated Base paper Market is Light and Expected to Llead to a Recovery in the Future in August
September 03 2019 17:44:22SunSirs(Selena)

According to SunSirs: the overall price of waste paper in August is still slightly weaker, and the previous downward price range is too much, which makes the future market rise still weak. On August 30, the average price of waste yellow paperboard was 1910 RMB/ton, which decreased by - 1.84% at the end of the month compared with the beginning of the month. In August, corrugated base paper prices continued to oscillate downward as a whole. On August 30, the average price of corrugated base paper was 2966.67 RMB/ton, which was - 2.73% lower at the end of the month than at the beginning of the month.


  1. Waste Paper

From the observation of market changes, in early August, the price of waste paper was lowered in a large area due to the price reduction Jiulong and Liwen. However, because the supply of waste paper was not very sufficient, the price of waste paper gradually restored to a stable level, and the price adjustment of paper enterprises gradually decreased. After the large-scale price reduction at the beginning of the month, the price of waste paper has been in a tepid state. The yellow board market has remained basically calm, and the price of large-scale paper enterprises is basically stable. Only a few paper enterprises adjust the purchase price because of the demand, but the range is not very large.


Since late August, the price of waste paper purchases has risen and fallen, which is due to the impact of typhoon in mid-August, the arrival of paper mills in some areas has decreased, coupled with the coming of "traditional peak season" in September, which has increased the demand for waste paper in paper mills. Therefore, in some areas, paper mills have increased the price of waste paper to increase the amount of waste paper arrival to ensure production. The decline is due to the fact that there are still a small number of areas where the stock of finished paper is still on the high side, coupled with the impact of the Sino-US trade war, the increase of orders is relatively slow, which makes the paper mill's attitude towards waste paper procurement is not positive.


  1. Corrugated base paper

As for corrugated base paper, on August 1, Jiulong and Liwen reduced the price of finished paper, which gradually expanded the affected area of paper mills in various regions, and consequently followed by the price reduction of finished paper. After the downturn, prices gradually returned to a stable level. However, August has gradually entered the Mid-Autumn Festival stock-up period, and the positive demand is not obvious. Up to late August, corrugated boxboard market rose partly, and the price of raw paper increased frequently. Due to the rising price of raw materials and waste paper in Guangdong, the cost pressure of paper enterprises increased. Some small and medium-sized paper enterprises tentatively raised their foreign quotations. With the impact of the expected demand factors in the peak season, the decline rate of paper mill inventory has accelerated, and some of the paper mills have a rising mentality. But the price of the leading paper mill is stable, so the atmosphere of price increase is not easy.


According to SunSirs analyst, the price of waste paper and base paper has shown signs of warming up near the end of the month, but there are also some paper mills worried about the loss of customers, so the quotation also shows a steady trend. However, due to the excess capacity in the early stage, it has not been fully digested so far, and the overall momentum for the surge will be insufficient. It is expected that due to the influence of the traditional demand peak season, the future market price may have a little room to rise, which may lead to a recovery.

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