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SunSirs: Wastepaper and Corrugated Paper Markets are Stable and Rising in China

April 22 2024 15:45:51     SunSirs (Selena)

According to the monitoring of the commodity market analysis system of SunSirs, the price of wastepaper in Zhejiang Province has slightly increased this week. On April 19th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,500 RMB/ton, an increase of 0.13% compared to the average price of 1,498 RMB/ton on April 14th. The price of corrugated paper has slightly increased. On April 19th, the average ex factory price of 140g corrugated base paper was 2,700 RMB/ton, which is 0.15% higher than the average price of 2,696 RMB/ton on April 14th.

By observing market changes, it can be seen that the prices of wastepaper in Zhejiang region have fluctuated this week, while prices in other regions of China have shown weak performance with both large and small fluctuations. Due to the current off-season in the market, the demand for raw materials by paper mills has decreased. However, with the increase in the amount of recycled yellow cardboard, the inventory of packaging stations is high, and paper mills often adjust the purchase price of wastepaper based on their own needs.

The price of corrugated base paper has remained stable with a slight increase. Currently, the market demand is flat, and cost support has been strengthened. Some production enterprises have experienced downtime for maintenance, leading to reduced expectations on the supply side. However, the increase in terminal demand is not yet significant, but considering the approaching May Day holiday, there may be a slight increase in demand, which will drive downstream packaging factories to replenish their inventory space. Although most paper companies have stable quotes in the market, there are still some areas where there is a slight upward trend.

The price of gray based whiteboard paper continues to be weak, with an average market price of 3,849 RMB/ton for 250g of gray based whiteboard paper on April 19, a decrease of 0.86% compared to the market average price on April 14. At present, the inventory of gray background whiteboard paper is still at a high level, and the market supply pressure is relatively high. However, the recovery of market demand is insufficient, and downstream procurement enthusiasm is poor, putting pressure on paper mill shipments. As the contradiction between supply and demand in the market deepens, prices continue to decline weakly.

The paper analyst from SunSirs believes that the current purchase price of wastepaper from paper mills will still fluctuate and adjust according to their own needs. After a slight adjustment, the prices of corrugated paper and gray based whiteboard paper will be temporarily in a wait-and-see state. With the approaching May Day holiday, downstream markets may have good expectations, and it is expected that the prices of corrugated paper and gray based whiteboard paper will remain stable in the short term.


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