April waste corrugated paper rise and fall of short-term pressure operation

2024-04-29

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April waste corrugated paper rise and fall of short-term pressure operation

By observing the changes in the market, the price of waste paper in Zhejiang stopped falling and stabilized in early April, and rose after the end of the Qingming holiday, and the price of waste paper in other parts of the country also continued to rise. Affected by the Qingming holiday, the paper mill waste paper arrival volume has weakened, waste paper inventory is relatively reduced, thus promoting the purchase price of paper mills. Subsequently, the amount of raw material waste yellow board paper recycling increased, making the packaging station inventory high, paper mills according to their own needs to adjust the purchase price of waste paper.

In late April, the price of waste paper stopped rising and falling, mainly because the pressure of domestic demand for finished paper continued to be transmitted to the waste paper end. The overall volume of waste yellow board paper in the paper mill increased, resulting in a reduction in the purchase price of waste yellow board paper. On the demand side, due to the slight fluctuation of the paper mill's starting load rate and the limited overall improvement in finished paper sales, the paper mill's interest in the recovery of waste yellow board paper demand was weak.

In April, corrugated paper prices stabilized before falling.

By observing the changes in the market, the price of corrugated paper ran smoothly in early April, and there was a certain pull on the demand for packaging paper as the paper market re-examined the demand for packaging paper. Although the price of raw waste paper has been raised, the corrugated paper market is temporarily in a wait-and-see state, and the short-term market oversupply pattern may be difficult to change.

The most direct reason for the rapid decline in corrugated paper prices after a slight rise in mid-to-late April is the greater demand pressure. At present, the general problem facing downstream packaging plants is that the order volume is small, the competitive pressure is large, and the profit margin is declining. Under the background of increasing operating pressure, packaging enterprises have slowed down the demand for finished paper procurement, and their base paper inventory is also at a low level. Coupled with the continuous increase in the volume of imported corrugated paper, the contradiction between supply and demand in the market has become increasingly prominent.

Business paper analysts believe that the current market demand for finished paper is still pessimistic, and paper companies are currently facing increasing pressure to destock. As inventory pressure increases, paper companies may continue to reduce their operating load in May. With the May Day holiday approaching, the paper mill downtime maintenance action has increased, so the demand for waste paper will be reduced, the price continues to be weak and stable operation, the short-term waste paper and corrugated paper prices are expected to run under pressure.