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SunSirs: White Cardboard and Whiteboard Paper Rose steadily in August, with Short-term Consolidation
September 05 2023 13:40:40SunSirs(Selena)

According to the monitoring of the commodity market analysis system of SunSirs, the prices of white cardboard and gray base white board first stabilized and then increased in August, and the overall price showed an upward trend. On August 31st, the average market price of 230g-400g white cardboard in China was 4,740 RMB/ton, an increase of 2.16% compared to the average market price of 4,640 RMB/ton on August 1st. On August 31st, the average market price of 250g white board paper in China was 4,215.67 RMB/ton, an increase of 1.2% compared to the average market price of 4,165.67 RMB/ton on August 1st.

White cardboard prices remain stable and rising in August

By observing market changes, it can be seen that the domestic white cardboard prices remained stable in mid to early August. The white cardboard market prices continued to hover at a low level, and the production of new white cardboard production capacity gradually increased. The demand continued to decline during the off-season, and in late August, the payment cycle entered. The market transaction center was under downward pressure. The spot price of the main raw material pulp remains high, and the trend of cost recovery will squeeze the profit space of white cardboard.

In late August, the market price of white cardboard saw an increase, and mainstream white cardboard paper mills performed well in receiving orders. The production and sales pressure of the paper mills gradually eased, and inventory pressure also slightly eased. Due to the serious phenomenon of price inversion in the early stage and insufficient profitability of the paper mill, mainstream paper companies have sent letters to increase prices, with a strong attitude towards price increases, leading to an increase in traders' quotations.

Whiteboard prices stabilized first and then increased in August

By observing market changes, it can be seen that the price of gray based white board paper in China remained stable in mid to early August,. The enthusiasm for the start of the whiteboard paper factory is not high, with the large-scale paper factory in Chongqing mainly producing coated kraft paper and white kraft paper in the first half of the year. Due to being in the traditional off-season, downstream procurement has a cautious mindset and limited incremental new orders. The supply pressure in the whiteboard market is high, and paper mills are under pressure to ship. The supply-demand contradiction pattern is difficult to alleviate, and the market trend is difficult to improve.

In late August, the price of gray base white board paper stabilized and explored an increase, leading to a surge in market sentiment. Paper mills have issued price increase letters one after another, but the implementation progress has been slow. In the third quarter, the whiteboard market was at a critical moment of turning from weak to strong, with paper prices hovering at a long-term low level, and the profitability of paper mills was weak. The stocking attitude of the industry has slightly improved compared to the previous period, and there are sporadic and moderate replenishment behaviors in the downstream, but the impact on the overall market is limited.

Paper analysts from SunSirs believe that with the arrival of the peak season in the traditional packaging industry, some terminal orders for the Mid Autumn Festival and National Day holidays have begun to be released one after another, which has supported expectations of positive demand in the white cardboard and whiteboard market. However, inventory needs to be digested after downstream stocking, and there is limited room for paper prices to rise. It is expected that the prices of white cardboard and gray based whiteboard may be slightly stronger in the short term.


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