SunSirs: China Wastepaper and Corrugated Paper continued to Decline in June, with short-term Low Volatility

According to the monitoring of the commodity market analysis system of SunSirs, the overall price of wastepaper in the Zhejiang region of China showed a downward trend in June, with a slight increase in prices towards the end of the month. On June 29th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,582 RMB/ton, a decrease of 1.25% compared to the average price of 1,602 RMB/ton on June 1st. The price of corrugated paper has maintained a downward trend. On June 29th, the average ex factory price of 140g corrugated paper was 2,780 RMB/ton, a decrease of 2.32% compared to the average price of 2,846 RMB/ton on June 1st.

By observing market changes, it can be seen that the domestic wastepaper prices showed a downward trend in mid to early June. On the supply side, with the arrival of summer and the continuous improvement of e-commerce festival activities, the recycling volume of the packaging plant has increased compared to the previous period, which has led to positive shipments from the packaging station. In terms of demand, due to the continuous rise in temperature and the arrival of the rainy season, the finished paper market is in a downturn, with reduced orders from paper mills and mid to high inventory of finished paper. This has led to a decrease in demand for wastepaper from paper mills, and wastepaper prices are hovering at a low level.

In late June, the wastepaper market was mostly operating smoothly. Due to the continuous decline in wastepaper prices in domestic paper mills, the prices of wastepaper entered a low level. Therefore, the prices of wastepaper in paper mills were mostly stable, and purchases were made on demand. As the end of the month approaches, the purchase prices of most domestic paper mills' wastepaper are still running smoothly. The price of wastepaper in Zhejiang has slightly increased, and the price increase is mostly adjusted according to their own needs.

By observing market changes, it can be seen that in mid to early June, the price of corrugated paper stabilized slightly, with a slight decline in price. Due to the traditional off-season and sluggish market operation, most paper mills ship corrugated paper at discounted prices. The continuous sluggish atmosphere in the packaging paper market permeates the industry, and the price of raw paper continues to be affected by the industry's supply and demand pattern and cost price changes, resulting in a downward pressure on prices.

In late June, the downward trend of corrugated paper prices expanded, and the downstream market remained cautious. After a moderate restocking, it still maintained a focus on just in demand procurement. In addition, with the end of the e-commerce festival in the middle of the year, market orders began to decrease, resulting in a decrease in demand for corrugated paper in the paper packaging industry, leading to a continuous decline in corrugated paper prices.

SunSirs paper analysts believe that the overall market for wastepaper and corrugated paper is still weak and difficult to change, and the market trading atmosphere is light. With the end of the E-commerce Festival in June, the market purchasing mentality has become more cautious. It is expected that the prices of wastepaper and corrugated paper may continue to fluctuate at low levels in the short term.

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