SunSirs: China Corrugated Paper Market Continues to Rise in August, with Short-term Strong Operation

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of corrugated paper will continue to rise in August 2025, supported by the increase in raw material costs and favorable demand, and the upward trend will continue to increase towards the end of the month. On August 29th, the average ex factory price of 140g corrugated paper was 2,704 RMB/ton, an increase of 5.13% compared to the average price on August 1st.

In terms of upstream raw materials, the price of waste paper in Zhejiang region showed an upward trend in August, and domestic waste paper prices continued to rise from south to north. On August 29th, the average purchase price of A-grade waste yellow cardboard in Zhejiang Province was 1,642 RMB/ton, an increase of 5.39% compared to the average price on August 1st. In early August, due to the increase in the operating rate of paper mills and the early resumption of some maintenance production lines, the output of finished paper increased, which in turn led to an increase in demand for waste paper. With the strengthening of market purchasing intentions, the price of waste paper continued to rise. In late August, the intensity of rainfall across the country decreased, and the recycling volume of packaging stations recovered to some extent. Paper mills took the initiative to lower the price of waste paper to stimulate the intention of packaging stations to ship, in order to increase the amount of waste paper received by paper mills. But soon the trend of price reduction decreased, and waste paper returned to an upward trend.

Supply side: In early August, due to the shortage of raw materials and environmental impact in Hebei region, some small and medium-sized manufacturers had to shut down for maintenance, resulting in a decrease in operating load rate and a slight easing of pressure on corrugated paper supply. In the last ten days of the year, with the opening of the Mid-Autumn Festival stocking status, the inventory of finished paper of paper enterprises continued to decline. In addition, large-scale paper mills continued to issue price increase plans to stimulate the downstream continuous market procurement. The short-term market price rise atmosphere still exists.

In terms of demand, the demand for corrugated paper in the market gradually improved in August. At the beginning of the month, several cardboard factories announced price increases, which boosted market confidence and provided some bottom support for corrugated paper prices. Subsequently, the enthusiasm for purchasing raw paper from downstream packaging factories has increased, and both downstream and end markets have made appropriate replenishment. In addition, due to the pressure of raw material costs and the expectation of positive consumption during the Mid Autumn Festival, paper companies are accelerating the price increase of corrugated paper.

The paper analyst from SunSirs believes that with the continuous rise in raw material prices and the expected demand during the Mid Autumn Festival peak season, there is still an expectation of an increase in corrugated paper prices. Production companies continue to issue price increase notices, coupled with paper mill inventory being at a medium low level, providing positive support for the market. However, it is also important to pay attention to the reserve status of raw paper in downstream packaging factories. The enthusiasm for future procurement may decrease, and it is expected that the price of corrugated paper will remain strong in the short term.

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