Multiple paper mills have raised corrugated paper prices, but the upward trend has not formed a scale

The corrugated paper market in August has once again received a price increase notice!

On August 14th, Shandong Fengyuan Zhongke Paper Co., Ltd. issued a price increase letter stating that due to the continuous increase in waste paper and various raw materials, the price of finished paper has fallen below cost. Starting from August 15th, the price of high-strength corrugated paper has increased by 50 yuan/ton.
Shandong Fengyuan Zhongke Paper Co., Ltd. is a leading papermaking enterprise in Zaozhuang City, with an annual production capacity of approximately 400000 tons. As early as August 4th, the paper company was the first to issue a price increase letter for raw paper, raising the price of high-strength corrugated paper by 30 yuan/ton. The price has been raised twice within ten days, with a cumulative increase of 80 yuan/ton, which is relatively rare in the current paper industry market.

In addition to regional scale paper companies, several bases under the leading domestic paper companies have also recently conducted price increases. On August 14th, Tianjin Jiulong Paper Industry raised the price of all tile paper by 30 yuan/ton, and Guangdong Liwen Paper also raised the price of tile paper by 30 yuan/ton; On August 15th, Shenyang Jiulong Paper Industry announced an increase of 30 yuan/ton for corrugated paper.

The current situation in the paper industry market is quite similar to early August, with the participation of large paper companies and local price increases. The reasons for the price increase announced to the public are mainly due to cost pressure and excessive operational burden on enterprises. However, from a national perspective, currently, the price increase of raw paper has not yet formed a scale.

However, in the medium to long term, August should be an important time point for the transition from low to high season in the paper industry market. As Xu Ling, a senior analyst in the corrugated paper market at Zhuochuang Information, told Securities Daily, "Some terminal orders for the Mid Autumn Festival and National Day holidays may be released as early as late August, and there are certain positive support expectations for demand

As is well known, compared to the first half of the year, the demand for terminal consumption will show a significant increase in the second half of the year. At the same time, domestic macroeconomic policy regulation will also increase, which is conducive to the expansion and release of market demand. Therefore, it is basically certain that the market in the second half of the year will be significantly better than in the first half, and the rise in paper prices will be relatively easy.

But the main problem at present is that the imbalance between supply and demand of raw paper still exists, and downstream packaging companies are more inclined to remain wait-and-see on paper prices. For more industry insiders, the time to a large-scale increase in paper prices may be getting closer, but the exact duration is difficult to determine. All that can be determined is the gradual arrival of the peak season of quiet waiting!