SunSirs: Small Rebound of China Wastepaper and Corrugated Paper Market, or Short-term Range Oscillation Operation

According to the monitoring of the commodity market analysis system of SunSirs, the price of waste paper in Zhejiang Province stopped falling and slightly increased this week. On December 7th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,570 RMB/ton, an increase of 0.77% compared to the average price of 1,558 RMB/ton on December 1st. The price of corrugated paper has also shown an upward trend. On December 7th, the average ex factory price of 140g corrugated base paper was 2,814 RMB/ton, which is 0.21% higher than the average price of 2,808 RMB/ton on December 1st.

By observing market changes, it can be seen that the prices of waste paper in Zhejiang region have remained stable and slightly increased this week. The domestic waste paper market has shown a rebound in price trends, with several leading paper mills leading the way in increasing waste paper prices. In December, as the prosperity of segmented industries such as e-commerce promotion, logistics acceleration, and cultural media increased, paper-making enterprises accelerated their destocking speed. Some paper-making enterprises engaged in packaging paper, cultural paper, and household paper issued price adjustment letters. As a result, paper mills started construction actively, and demand for raw materials and waste paper increased, leading to an upward trend in waste paper prices.

The price of corrugated base paper has slightly increased this week. Recently, driven by the rebound of waste paper prices and the new corrugated paper price increase letter issued by Jiulong Paper Factory, the atmosphere of the base paper market has rebounded and improved. However, most paper mills are still in a wait-and-see state, with most operating smoothly and only a few following the trend, resulting in a relatively small increase in prices. Recently, with the introduction of new production capacity, market supply pressure may increase, which has played a certain role in suppressing the future price increase of corrugated paper.

SunSirs paper analysts believe that the current market for waste paper and corrugated paper is still in the peak season of traditional industries, driven by holiday orders and stable demand growth. However, the addition of production capacity has led to loose market supply and suppressed the potential for price increases. Therefore, in the context of intertwined supply and demand contradictions, it is expected that the prices of waste paper and corrugated paper will remain fluctuating in the short term.

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