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SunSirs: China Corrugated Paper Prices are Stable

September 13 2024 09:29:37     SunSirs (Selena)

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of corrugated paper has remained stable this week. On September 12th, the average ex factory price of 140g corrugated paper was 2,610 RMB/ton, which remained stable compared to the average price on September 8th.

In terms of upstream raw materials, the price of waste paper in Zhejiang region continued to rise slightly this week, while the price of waste paper in domestic paper mills fluctuated, mostly running steadily. On September 12th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,523 RMB/ton, an increase of 0.26% compared to the average price on September 8th. At present, paper mills in various regions adjust the price of waste paper according to their own needs. The scope of rainfall in China has narrowed, and the supply of waste yellow cardboard has remained stable. However, the production intention of paper mills is generally average, and the demand for waste paper has slowed down, resulting in a decline in the consumption of waste yellow cardboard. The slight increase in prices this week may be mostly due to restocking due to holiday closures.

On the supply side: Currently, the production intention of paper mills is average, and the production of corrugated paper enterprises has decreased. The inventory of paper mills is showing an increasing trend. Due to the adjustment of transaction focus in different directions within the region, most paper mills in other areas remain stable and observe, and the trading atmosphere is average. Under the influence of this factor, downstream customers lack confidence in market transactions and are not actively aware of order stocking, resulting in fewer new orders and a flat market.

In terms of demand, the market demand has remained stable with little change in trading volume. Downstream, the main focus is still on purchasing for essential needs and digesting previous inventory. The enthusiasm for adding and replenishing inventory is not high, and some paper mills have difficulty balancing production and sales. In addition, there is insufficient follow-up of new orders from downstream packaging factories, and doubts about the incremental demand in the later stage. The purchase of raw paper is urgently needed, and there is insufficient support from the demand side.

The paper analyst from SunSirs believes that the Mid Autumn Festival stocking season has ended, and downstream finished paper sales may remain weak. The intention of paper mills to start production is slowly declining, and finished paper inventory is continuing to rise. In addition, the price of waste paper has fallen more than it has risen, and the cost side has weak support for the price of corrugated paper. It is expected that the price of corrugated paper will remain stable and wait and see in the short term.

 

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