SunSirs: China Waste Paper and Corrugated Paper all Fell, Short-term Shock Ffinishing

According to the data monitoring of SunSirs, the price of waste paper in Zhejiang Province showed a downward trend last week. As of December 9, the average purchase price of grade A waste yellowboard in Zhejiang was 1,984 RMB/ton, down 3.88% compared with the average price of 2,064 RMB/ton on December 4. The price of corrugated paper dropped slightly. On December 9, the average ex factory price of 140g corrugated base paper was 3,208 RMB/ton, down 0.19% compared with the average price of 3,214 RMB/ton on November 4.

According to the observation of market changes, the domestic waste paper prices continued to show a downward trend last week, and the decline in waste paper prices continued to spread to the whole country in the coming weekend. Since the beginning of December, leading paper enterprises have successively released Spring Festival shutdown arrangements, involving many bases and a long time. The demand for raw waste paper will be greatly reduced when the paper mills stop production in succession. When the paper mills have sufficient inventory, they will reduce the purchase price of waste paper one after another to reduce the arrival of waste paper. With the approaching of the Spring Festival, the stock of paper mills has been basically completed.

In terms of the price of corrugated base paper, the price of corrugated paper dropped slightly last week. Recently, Jiulong Paper and Shanying International have successively issued shutdown letters, involving many bases and a long time. According to previous years, most of the notices of price increase were given after the letter of shutdown of paper enterprises, but this year it did not work. With the approaching of the Spring Festival holiday and the sharp drop in the price of waste paper, the price of corrugated paper has no rebound momentum in the short term. However, the downstream packaging market is very wait-and-see, and packaging enterprises purchase on demand, which is difficult to provide support for the rise in paper prices.

According to the paper analysts of SunSirs, the price of waste paper is in a downward trend at present, and the frequent downtime of paper mills has a significant impact on the demand for waste paper. However, the downstream paper packaging enterprises still have no good cash flow on the demand for base paper, and it is estimated that the short-term prices of waste paper and corrugated paper may continue to fluctuate in China.

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