Fujian Mills Offer 50 Yuan/Tonne Discount on Corrugated and Containerboard Orders as Mainstream Prices Hold on Sept 14

On September 14, Longzhong Information showed that corrugated paper and containerboard prices were mostly stable, with only sporadic preferential policies from mills in select regions. Public health incidents disrupted transport in Fujian's Putian, Quanzhou and Xiamen areas, slowing the movement of goods. A limited number of Fujian mills offered a 50 yuan/tonne discount on order prices for corrugated paper and containerboard. Elsewhere, isolated mills in East China and North China shipped at discounted levels. Upstream waste yellow board paper purchase prices fell broadly, eroding cost-side support, and trading at downstream secondary plants was also subdued.

Figure 1: Domestic corrugated paper price trend.

Market trend analysis and forecast:

Longzhong expects upstream waste yellow board paper prices to move lower, a bearish signal for corrugated paper and containerboard. With downstream demand also lackluster, mainstream prices in the short term may stay on a stable-to-slightly-weaker path.

Upstream and downstream related products

In the pulp market, quotes on September 14 were largely unchanged, with the board fluctuating and adjusting. Supply-demand fundamentals showed limited improvement, downstream demand was weak, purchasing was mostly need-based, and transactions were thin. Mainstream spot reference prices were 6,200-6,250 yuan/tonne for softwood pulp, 4,600-4,650 yuan/tonne for hardwood pulp, 5,900 yuan/tonne for unbleached pulp and 3,400 yuan/tonne for chemi-mechanical pulp. Downstream acceptance remained low; near-term pulp spot prices are expected to consolidate, with deals mainly for immediate needs.

In the domestic waste yellow board paper market, September 14 saw mostly declines, with some mills cutting prices for a second straight day. Finished paper demand remains weak, and under the 'dual control' policy some small and medium-sized mills in certain regions plan shutdowns, reducing waste paper demand and weighing on prices. Recently, during the National Games in Shaanxi, certain local mills halted production and imposed restrictions on trucks from other regions, hampering shipments from baling stations. Longzhong expects the domestic waste yellow board paper market to remain weak tomorrow.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378246.html