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SunSirs: China White Cardboard and White Board Experienced a Downward Trend in March, with Short-term Weak and Stable Operation

March 29 2024 14:49:47     SunSirs (Selena)

According to the monitoring of the commodity market analysis system of SunSirs, the prices of white cardboard and gray background white board both showed a downward trend in March. On March 28th, the average market price of 230g-400g white cardboard in China was 5,006.67 RMB/ton, a decrease of 3.84% compared to the average market price of 5,206.67 RMB/ton on March 1st. On March 28th, the average market price of 250g white board paper in China was 3,915.67 RMB/ton, a decrease of 2.08% compared to the average market price of 3,999 RMB/ton on March 1st.

By observing market changes, it can be seen that the white cardboard market prices remained stable and slightly decreased in mid to early March. Although white cardboard profits were low, some leading paper mills issued price increase letters in April due to strong cost support. This also led traders who had previously quoted higher prices to lower the price of white cardboard, in preparation for the expected increase in white cardboard prices in the future. Due to high production capacity concentration and high cost support, the white cardboard market has relatively good resistance to decline, but the market trend is always dominated by supply and demand.

In late March, the price of white cardboard continued to decline, with insufficient release of new orders in the market and pressure on inventory and shipment. In terms of supply, the white cardboard market is in an oversupply state, and with the gradual increase of new production capacity, the market competition situation has intensified. Although supported by strong costs and price increase letters, market demand is showing signs of weakening, with most businesses reporting a decrease in orders. Against this backdrop, traders are facing increased shipping pressure and prices are constantly loosening and falling. By observing market changes, it can be seen that the price of domestic gray based white board paper remained stable in mid to early March. From the end of February to early March, large-scale paper mills implemented price preferential policies, causing some nearby paper mills to follow suit and enter the stage of digesting and reducing prices for white board paper. In the context of limited new orders from downstream customers and insufficient overall market demand follow-up, the price of white board paper remains low and remains stable for the time being.

In late March, there was a slight decline in the price of gray based white board paper, mainly due to insufficient downstream demand and increasing market supply pressure. In March, the production and inventory of white board paper showed a slight increase trend, and the market supply pressure continued to increase. However, the recovery of market demand was insufficient, and the shipment of paper mills continued to be under pressure. In addition, with the continuous decline in the price of waste paper raw materials and weak cost support, the price of gray bottom white board paper has decreased.

The paper analyst from SunSirs believes that the current price increase in the white cardboard market is not as expected, and there is currently no clear follow-up on actual market transactions. Traders and downstream customers have increased bearish sentiment. The supply-demand contradiction pattern in the gray background white board market is gradually emerging, and the market is operating weakly. It is expected that the prices of white cardboard and gray background white board will temporarily remain weak and stable in the short term.


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