According to data monitoring by SunSirs, the price of waste paper in Zhejiang continued to fall this week. On March 17, the average purchase price for Grade A waste yellow board paper in Zhejiang was 1,520 RMB/ton, a decrease of 1.81% compared to the average price of 1,548 RMB/ton on March 12. The price of corrugated paper decreased significantly. On March 17th, the average ex-factory price of 140g corrugated base paper was 2,888 RMB/ton, a decrease of 4.94% compared to the average price of 3,038 RMB/ton on March 12th.
Analysis review
By observing market changes, it can be seen that the domestic waste paper price continued to fall this week, and then the decline gradually slowed down. This round of decline in the price of waste paper was mainly due to factors such as shrinking demand in the downstream finished paper market and downtime for price protection, resulting in flat demand for waste paper in paper mills and a continuous downward trend in waste paper prices. As the price of waste paper fell to a low point, prices picked up slightly towards the weekend.
In terms of the price of corrugated base paper, the price decline of corrugated paper continued to increase this week. This year, major enterprises in the corrugated paper industry experienced a relatively rare situation of price reduction and production reduction. One reason was that the country had started to implement zero tariffs on recycled cardboard and corrugated base paper, which had increased the enthusiasm for domestic imports; Second, the slow recovery of market demand did not meet expectations; Thirdly, as the price of raw material waste paper continued to decline, the cost support for corrugated paper has weakened.
Market outlook
"As of the 17th, the demand for waste paper and corrugated paper in the market is still weak, so the market may continue its downward trend," said paper analysts from SunSirs. However, as the price of paper continues to decline, the scope for paper mill downtime and maintenance increases, and the downward space may narrow. It is expected that the prices of waste paper and corrugated paper will continue to fluctuate at a low level in the short term.
