SunSirs: The Overall Low Positions of White Board and White Cardboard were mainly Short-term Shock in September

According to the data monitoring of SunSirs, the market price of white board and white cardboard will remain at a low level in September 2022. On September 29, the average market price of 230g-400g paperboard in China was 5,713.33 RMB/ ton, down 2.17% compared with the average price at the beginning of the month (on September 1, the average market price was 5,840 RMB/ ton). On September 29, the average price of 250g white board in the domestic market was 4,432.33 RMB/ ton, down 1.48% compared with the average price at the beginning of the month (on September 1, the average market price was 4,499 RMB/ ton).

From the observation of market changes, in the first ten days of September, the price of white cardboard continued to decline, new capacity of white cardboard in the market continued to release, and the technical transformation of individual paper mills into white cardboard continued to increase the output of white cardboard. In the case of oversupply, the market became more bearish. According to statistics, the total output of domestic white paperboard from January to August 2022 is about 7.27 million tons, with a year-on-year increase of 20.3%.

In late September, the price of white cardboard still fell, but it rebounded near the end of the month. At first, as the market stock for the Mid Autumn Festival was basically completed, the market demand fell again, making the price of white cardboard loose and lower. At the end of the month, the price of white paperboard fell back. Due to the gathering of e-commerce festivals in the fourth quarter, the downstream paper packaging enterprises entered the state of stock, and some paper mills were shut down for maintenance, delaying the production and sales pressure of local base paper. The continuous high price of wood pulp has supported the price of white cardboard to some extent, so there is an upward trend.

According to the observation of market changes, the price of white board paper was weak in the first ten days of September. All white board paper machines were scheduled to be shut down for maintenance in September. With the completion of orders in the Mid Autumn Festival, the production enterprises were again in the state of accumulation. However, due to the impact of public health events in many regions of China, the market transaction is weak, the shipment speed has slowed down, and the high inventory pressure of paper enterprises is difficult to ease in the short term. Under the demand performance of "the peak season is not prosperous", the operators have insufficient confidence in the future market.

In late September, the price of white board was still slightly lower, and the market supply and demand were basically stable. Due to the continuous release of the shutdown letter of the paper mill, the actual order delivery price was mainly discussed. Distributors and downstream suppliers are still cautious in preparing goods, terminal demand continues to be sluggish, and most operators are not confident in the future market. Some traders lowered the price of white board slightly to increase shipment. Near the end of the month, the price of white board paper remained stable, the demand of the downstream market did not change much, the oversupply of inventory did not ease, and the market transaction was flexible.

According to SunSirs paper analysts, the prices of paperboard and whiteboard are still at a low level compared with the previous period. With the arrival of the fourth quarter e-commerce festival and year-end promotion, downstream demand may rise to some extent. However, the prices of energy, pulp, etc. remain high, the paper mill profit space is under pressure, and the traders' quotations are slightly confused. It is expected that the prices of white cardboard and white board will remain volatile in China in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.