Influence of "ban on waste" on corrugated boxes

28-07-2023

We most often use box board corrugated paper. Its advantages are self-evident. It not only saves resources, but also has low prices. At the same time, it has the advantages of convenient transportation and easy assembly. However, in the past two years, the price of box board corrugated paper has fluctuated significantly. Picking up garbage and collecting waste products are also praised by young people as "a rotten ideal life". A paper shell may be really valuable.


With the enhancement of environmental protection awareness, the promulgation of the "no waste order" and the foil of successive festivals, the price of box board corrugated paper has been dropping. In recent years, the box board corrugated paper has been in an unstable state, especially the price increase in the fourth quarter of each year, which is mainly due to the large number of festivals during this period and the strong downstream demand.


Recently, the mainstream price of the box board corrugated paper market was mainly lower. Recently, the leading paper enterprises lowered the price of box board corrugated paper again, about 30-150 yuan / ton. Then, a large number of paper factories such as Dongguan Jiulong, Shanying international and Dongguan Liwen also announced that they would shut down for maintenance. The low downstream demand, the high inventory of paper enterprises, and the decline in the price of waste yellow paper are all ringing the alarm bell of the whole sunset industry.

The price of box board corrugated paper continued to fall, causing the whole industry to fall into a downturn.


According to the data of the National Bureau of statistics, since the middle of April, the average price of corrugated paper has dropped from 3812.5 yuan to 3558.9 yuan in the middle of July, and there is no sign of reaching the bottom. On July 29, more than 130 packaging paper enterprises in the country reduced the paper price. Since the beginning of July, the five major bases of nine dragon paper industry, Shanying paper industry, Liwen paper industry, Fujian Liansheng and other large-scale paper enterprises have successively implemented 50-100 yuan / ton discount for the price of corrugated box board.


In the second half of the year, the price of box board corrugated paper is likely to rise. After all, national day, Mid Autumn Festival and other festivals may greatly stimulate the demand of downstream packaging manufacturers. The price trend in 2020 and 2021 also well verified this point. The price rose sharply at the end of the first quarter and fell sharply at the beginning of the second quarter. After the decline, the paper price exceeded the low price before the rise. From the beginning of May to the end of the year, it entered a continuous upward stage. However, this year's downward trend is obviously stronger and lasts longer.


The impact of weak downstream demand on the price of box board corrugated paper is intuitive. In addition, the cost side and the supply side have an impact on the price of box board corrugated paper. This year's "shutdown and overhaul tide" may also be related to high cost pressure and declining profit level. It is obvious that the continuous price reduction has led to a series of chain reactions.


All kinds of signs show that the paper industry, which is not rich, has become even worse in the past two years


"The price of waste cartons is 40 cents per catty, which is too low. Last month, the price of waste cartons was 60 or 70 cents per catty. It was only a short month later that the price dropped so much."


As the main raw material of the paper industry, the price of waste paper has fallen again and again due to the depressed market. As of July 28, the average price of domestic waste yellow board paper was about 2100 yuan per ton, down 250 yuan per ton compared with 2350 yuan per ton at the beginning of the month, a year-on-year decrease of more than 10%.


The development of the industry has always been ups and downs. The constraints of the box board corrugated paper industry have not been eliminated. There are still many difficulties and challenges on the way forward. Although the consumption environment cannot be improved in the short term, from a long-term perspective, with the improvement of consumption desire, the industry is bound to become more and more stable.


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