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SunSirs: Building Material, Crazy March! Wastepaper Market Plummeted 30.49%

April 02 2020 10:46:17     SunSirs (Selena)

According to the data monitoring of SunSirs: wastepaper Market: at present, the average purchase price of Grade A in the wastepaper market is 1,677 RMB/ ton, which is 740 RMB/ ton lower than the average purchase price of 2,412 RMB/ ton at the beginning of the month (March 1), or 30.49%. Compared with the beginning of the year (average price 2,171 RMB/ ton on January 1), the price decreased by 494 RMB/ ton, or 22.76%. Corrugated paper Market: at present, according to the data monitoring, the reference factory price of 140g corrugated base paper is around 3,200-3,400 RMB/ ton (including tax).

Market analysis

Wastepaper Market: in March, major paper mills in the wastepaper market lowered the purchase price of wastepaper for many times, with the maximum decline of paper enterprises reaching 1,000 RMB/ ton. Since March 3, hundreds of paper enterprises led by several famous paper enterprises in Guangdong and other places began to reduce the purchase price of wastepaper, which opened the prelude of the collapse of wastepaper market in March. After 10 days of continuous decline, on March 13, the average purchase price of grade a yellow board paper in wastepaper market was 2295 RMB/ ton, which was almost the same as the average market price before the year, but the market did not stop falling and rebound. In late March, the decline of the wastepaper market did not slow down. In a short half month, the market continued to fall. As of March 29, the average market price reference was 1,700 RMB/ ton. On March 29, the wastepaper market showed signs of recovery. Some paper companies slightly increased the purchase price of wastepaper, and the market as a whole continued to decline, but the decline gradually stopped. According to the data monitoring of SunSirs, on March 30, the average purchase price of grade A yellow and waste in the wastepaper market was 1,648 RMB/ ton, and on March 31, the average purchase price was increased. On that day, the average purchase price of domestic grade a yellow paper in the wastepaper market was 1,677 RMB/ ton, slightly increased by about 30 RMB/ ton, a decrease of 740 RMB/ ton or 30.49% compared with the average purchase price of 2,412.86 RMB/ ton at the beginning of the month (March 1). It has been submerged by a huge decline, and the current price has created a low price of waste paper for nearly a year.

Corrugating paper Market: the trend of domestic corrugating paper market can be said to be closely following the raw material waste paper. From March, affected by the sharp decline of raw material waste paper, from March 4, Guangdong and other large paper enterprises took the lead in issuing price reduction letters, followed by various paper enterprises, which issued price reduction letters one after another. On March 13, as the raw material waste paper market dived again, the paper enterprises also lowered their offer for corrugated paper again, with the reduction range of 100-200 RMB/ ton. In the whole March, the amount of corrugated paper price reduction of large-scale paper enterprises was about 300-500 RMB/ ton, and the price reduction of small and medium-sized paper enterprises was even greater, around 400-700 RMB/ ton, and some paper enterprises reduced the price of corrugated paper to 1,000 RMB/ ton in March. Near the end of March, the overall decline of the corrugated market slowed down. I heard that the corrugated price of some paper enterprises has been raised, and the overall market trend has improved.

Market Forecast

SunSirs' paper analysts believe that in recent days, the decline of the wastepaper market has eased, and some paper enterprises have started to raise the purchase price of waste paper at the end of last week. This paper industry's headstream drive may affect the overall trend of the paper market in April. Therefore, bold prediction, the paper market in April may come out of the trough from high.

 

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