Corrugated Paper and Domestic Recovered Paper Both Weaken: November 18 Market Snapshot
In a November 18 analysis, SunSirs said corrugated paper prices remained on a downward track. Leading mills had intended to raise base paper prices on the 16th, but that move has now been pushed to December 1, strengthening bearish sentiment across the market. Some large paper producers in Central and South China lowered prices by 100-150 yuan/tonne. Downstream paper mills showed no clear improvement in new orders and mainly stayed cautious on purchasing. The price of 140g corrugated paper stood at 4,120 yuan/tonne on November 18. With demand still soft, corrugated paper prices are forecast to trend mainly weaker with volatility in the near term.
Meanwhile, the domestic recovered paper market has seen a pronounced decline in recent days, with the downtrend widening.
Fubao Information reported that large paper mills led the market lower on November 18, with Fujian, Zhejiang and Jiangsu following suit. Major producers in North China held prices stable, most mills in Hebei and Hubei reduced prices by 20-50 yuan/tonne, and in South China and Southwest China only Dongguan Jintian raised prices, by 30 yuan/tonne. Among the day's moves, Nine Dragons' Taicang base cut prices by 50 yuan/tonne, quoting Grade A yellow board paper at 2,460 yuan/tonne; Shanying's Zhangzhou base also cut by 50 yuan/tonne, with Grade B yellow board paper at 2,520 yuan/tonne; Lee & Man's Jiujiang base lowered prices by 30 yuan/tonne, quoting Grade 1 paper at 2,530 yuan/tonne.
According to Fubao Information, the national waste paper index came in at 2,522.2 on the 18th, level with November 1. The domestic recovered paper market showed a clear decline, with nearly 60 paper enterprises reducing prices. Mill arrivals have remained high recently, while papermakers' purchasing appetite has weakened; combined with insufficient finished paper demand, support for recovered paper is limited. The domestic recovered paper market is therefore expected to stay weak in the short term.
Source: China Packaging Network (pack.cn); original link: http://news.pack.cn/show-378712.html
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