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SunSirs: China Waste Paper and Corrugated Paper continued to Fall, or Short-term Low-level Shock Finishing
August 05 2022 10:09:06SunSirs(Selena)

According to the data monitoring of SunSirs, the purchase price of waste paper in Zhejiang is still in a state of covering decline this week. On August 5, the average purchase price of grade a waste yellow paperboard in Zhejiang was 2,034 RMB/ ton, a decrease of 1.45% compared with the average price at the beginning of the week (the average market purchase price on July 31 was 2,064 RMB/ ton). The price of corrugated paper kept decreasing. On August 5, the average ex factory price of 140g corrugated base paper was 3,354 RMB/ ton, down 1.47% from the average price at the beginning of the week (on July 31, the average ex factory price of 140g corrugated base paper was 3,404 RMB/ ton).

According to the observation of market changes, the purchase price of waste paper from domestic paper mills in Zhejiang remained stable after covering the decline this week. At the beginning of the week, the domestic waste paper price was still in the state of covering the decline. While the paper price fell comprehensively, some paper enterprises also issued shutdown and overhaul letters, and the maximum shutdown time reached 30 days. Therefore, the demand of paper mills for waste paper raw materials is poor, resulting in the price of waste paper falling again and again. Subsequently, the waste paper market in some parts of the country stopped falling and retreated, and the number of paper mills increased gradually near the weekend.

In terms of the price of corrugated base paper, the price of corrugated paper continued to decline this week. In recent days, a number of major packaging paper enterprises have announced shutdown and overhaul, while the stock of base paper factories is generally high, and the intention to ship is particularly strong, while the downstream demand is relatively flat, the operating rate of paperboard factories and carton factories is not high, and the demand for base paper is weak, which makes the price of corrugated paper continue to be reduced.

SunSirs paper analysts believe that with the recent release of maintenance arrangements by nine dragons, Shanying, Liwen and other paper mills, many paper machines will be shut down for maintenance in August, which will reduce the pressure on the market supply side and help reduce the current stock of base paper. However, the demand for waste paper will continue to be weak, and the short-term prices of waste paper and corrugated paper are expected to remain low and volatile in China.


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