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SunSirs: Wastepaper and Corrugated Base Paper Rose hardly in May

June 04 2020 10:24:26     SunSirs (Selena)

According to the data monitoring of SunSirs: wastepaper Market: at present, as of May 29, the average purchase price of Grade A in waste paper market was 1,850 RMB/ ton, up 1% from the average price of 1,831.43 RMB/ ton a week ago (May 21); up 46 RMB/ ton from the average price of 1,804.29 RMB/ ton at the beginning of the month (May 1), up 2.53%. Corrugated paper Market: at present, according to the data monitoring of the business agency, the corrugated paper market was generally stable, moderate and slightly upward in the near future, and the reference factory price of 140g corrugated base paper was around 2,850-3,150 RMB/ ton (including tax).

Market Analysis

Wastepaper Market: in May, China's wastepaper market can be described as "ups and downs" until May 29. According to the data monitoring of SunSirs, since the beginning of May, China's Grade A yellow wastepaper market was ups and downs.

At the beginning of May, due to the factors such as the stoppage of logistics during the May Day holiday and the rest of workers in the packing station, the packing stations in many areas delivered goods actively after the festival, and the amount of waste paper delivered by the paper factories was too much. Therefore, after May 7, many paper factories made the first attempt to reduce the purchase price of waste paper. Driven by large factories, small and medium-sized factories also followed. The data monitoring on May 1 showed that Grade A wastepaper purchase price was 1,804 RMB/ ton, and on May 7 the purchase price of Grade A wastepaper was 1,787 RMB/ ton. In late May, the overall trend of wastepaper market was weak, the downstream demand was weak, the overall price was low and fluctuated little, the inventory of some packing stations increased slowly, and the demand for finished products did not recover significantly. Until May 21, most paper enterprises in East China took the lead in raising the purchase price of waste paper. In the next few days, affected by the rise of paper mills in East China, the overall situation of national waste remained stable and positive, and the market also saw a relatively obvious rise in the end of the month.

As of May 29, the average purchase price of Grade A wastepaper was 1,850 RMB/ ton, which was increased by 46 RMB/ ton or 2.53% compared with the average purchase price of 1804.29 RMB/ ton at the beginning of the month (May 1).

Corrugated paper Market: in May, the corrugated paper market as a whole showed a steady upward trend. At the beginning of the month, the corrugating paper market temporarily operated stably, the quotations of leading enterprises in various regions have not been adjusted yet, and the small and medium-sized enterprises mainly wait and see. After May Day Holidays, other small enterprises raised the quotations of corrugated paper by 50 RMB/ ton. Driven by the rise of wastepaper market after May Day Holidays, and less replenishment in the lower reaches before the festival, corrugated paper demand orders increased. Driven by multiple factors, on May 11, the corrugated paper market rose in some areas. The prices of some paper mills in Guangdong, Henan, Hebei and Shandong were increased by 50-100 RMB/ ton. The stable operation of the board paper market was the main factor, and the prices were increased by about 50 RMB/ ton. In the next few days, the price of waste from upstream to the factory remained stable, with some minor adjustments. The corrugated paper market followed its main operation mode of horizontal plate finishing. In some areas, narrow adjustment was made according to the arrival volume and downstream demand, and the overall operation mode was stable.

On May 20, there was a sound of price increase in some bases of large-scale paper mills, with an increase of about 30-50 RMB/ ton. Among them, the increase in Liwen paper industry was the most obvious, and the increase in corrugated paper and box board paper was almost 50-70 RMB/ ton. Due to the low sales price in the early stage of the base paper corrugating and the high cost pressure of the enterprise, the paper hopes to rise strongly. Influenced by the news of the price rise of some bases of the large-scale paper factory, the market wait-and-see atmosphere is more and more strong. Some small and medium-sized paper factories have narrow adjustment, and some small and medium-sized paper enterprises have increased by 50-100 RMB/ ton. In the following days, the market remained stable and small. Until May 25, the price of some bases of Jiulong paper industry was increased, including Dongguan Jiulong, Taicang Jiulong and Chongqing Jiulong, all of which raised the factory price of corrugated paper by 50 RMB/ ton. During May 27 and 28, most of the small and medium-sized paper enterprises followed the rise. This time, the price rise driven by the leading enterprises brought confidence to the small and medium-sized paper factories and the second and third grade paper factories, and brought hope to the base paper market with low demand and low-end trend in the long term.

As of May 29, the average price of 140g corrugated paper was 3,050 RMB/ ton, 1.67% higher than the reference price of 3,000 RMB/ ton at the beginning of this month (May 1), according to the data monitoring of SunSirs.

Market Forecast

SunSirs analysts believe that, at present, the waste paper and corrugated paper market can eliminate the downstream demand shortage and other factors at the end of the month, which will greatly boost the overall market of the paper industry in June, and increase the confidence of the industry. It is expected that the waste paper and corrugated market in early June will be mainly upward trend.

 

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