Containerboard and Corrugated Paper Update: Short-Term Volatility and Accumulation, Continue to Favor August Price Hikes!

English summary

The market has recently been concerned that waste paper prices in some regions have softened, prompting small and medium paper mills to offer discounts. According to Zhuochuang data, as of July 27, waste yellow board paper prices have fallen RMB 58/ton from the peak, while containerboard and corrugated paper average prices have fallen RMB 2 and 18/ton, respectively. The current round of waste paper price cuts is mainly due to packaging stations destocking during the off-season (mainly individual operators with weak risk resistance). Currently, packaging station inventories are low, so the room for further waste paper price cuts is limited. Some small and medium mills have seen waste paper loosen and are selling at discounts. Large mills such as 玖龙 are expected to follow with slight price cuts in the coming days. However, paper mill inventories are still low in the off-season, so the decline in waste paper and finished paper prices is expected to be limited. After August, as the peak season arrives, paper prices will return to an upward channel.