In the Chinese paper and packaging market, the weak demand and oversupply in July once again suppressed the prices of recycled cardboard and color box cardboard, forcing some paper mills to further reduce production, while producers of gray based white cardboard and high-end cultural paper made from raw materials such as raw fibers have repeatedly increased prices to prevent a sharp decline in prices from occurring again in the previous months.
July should be the beginning of the traditional peak season in the Chinese packaging industry, and demand for cardboard is usually expected to rebound in the second half of the year, driven by domestic and foreign orders related to various festivals. However, market participants stated that so far, the packaging demand in the entire market has remained tepid or even flat. Due to the contraction of exports and the sluggish real estate market, retail sales growth has slowed down, and domestic industrial activity has weakened.
Leading manufacturers of recycled cardboard have chosen to continuously lower prices, totaling 50 to 150 yuan per ton, in an attempt to bring in more orders, and small and medium-sized paper mills have also had to follow suit. In East China, as of Wednesday, July 26, the average price of high-strength corrugated base paper fell by 88 yuan per ton from the late May. The average price of imitation kraft cardboard this week has decreased by 102 yuan/ton compared to last month; The average price of white faced kraft cardboard has decreased by 116 yuan/ton compared to the previous month; The average price of white faced kraft cardboard this week has dropped by 100 yuan/ton compared to a month ago.
Since the resumption of business after the Chinese New Year holiday in late January, there has been a seemingly uninterrupted price drop in the Chinese market. Sources from secondary and tertiary factories have stated that they "cannot see the end of the tunnel yet". The deterioration of profitability has also put pressure on recycled cardboard factories (including large factories) to reduce production. Some major manufacturers of recycled cardboard in China have announced plans to halt production in late July and August.
Post time: Apr-19-2024