SunSirs: China Wastepaper & Corrugated Paper have Fallen, and the Downward Risk still Exists

According to the data of SunSirs, the price of wastepaper decreased on August 12, and the number of paper mills continued to increase. On August 12, the average purchase price of waste yellow board paper was 2,151.43 RMB/ ton, which was 7.14 RMB/ ton lower than that of the previous day (the average purchase price of wastepaper on August 11 was 2,158.57 RMB/ ton), a decrease of 0.33%. The price of corrugated paper began to decline this week. On August 12, the average factory price of corrugated base paper was 3,325 RMB/ ton, which was 50 RMB/ ton lower than that at the beginning of the week (the average factory price of corrugated base paper was 3,375 RMB/ ton on August 9), which was reduced by 50 RMB/ ton or 1.48%.

According to the observation of market changes, some paper mills began to reduce their prices in the waste paper market from August 10 to August 12, and then gradually increased. The decline in the price of wastepaper is mainly due to the recent downturn in sales of some paper mills, which increases the pressure on paper mills' inventory, so the demand for wastepaper is temporarily slowed down. At present, in order to control the arrival of wastepaper, most paper mills have reduced the purchase price of wastepaper.

In terms of the price of corrugated base paper, the price of corrugated paper began to decrease in recent days. With the price reduction of finished paper of leading paper mills such as Liwen, Jingxing and Jinfenghuang, the price drop has spread to seven provinces. At present, there is little trading in the base paper market. With the increase of price reduction paper mills, the market sales pressure increases. In addition, the import of paper products began to arrive in Hong Kong at the beginning of the month, and the preferential prices had a certain impact on the domestic market, so the prices of corrugated paper and cardboard had to be reduced to grab orders. The high level of inventory and the release of domestic new production capacity have formed pressure on the base paper market.

SunSirs analysts believe that from the current market atmosphere, paper prices are still relatively high in the near future, some paper mills are generally sufficient in inventory, downstream enterprises are mainly normal replenishment. It is expected that there is a downward risk in the price of China wastepaper and corrugated paper in the short term.

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