Packaging / Advertising & Office

According to market experience over the years, after the Spring Festival, with the recovery of logistics and the improvement of demand, many paper mills have plans to increase prices, boosting market confidence. However, 2023 was an exception. According to customs data, the cost of waste paper raw materials was insufficient, downstream demand continued to be sluggish, new production capacity was gradually put on the market, and the arrival of imported paper was rising. Influenced by many negative factors, the price of corrugated paper continued to decline. Paper mills such as Jiulong and Shanying took the lead in reducing prices and production.

According to customs data, since January 1, 2023, China has implemented a temporary import tariff rate lower than the most favored nation tariff rate on 1020 items of goods, including double adhesive tape, coated paper, white cardboard, recycled cardboard, and corrugated base paper, which are among the papermaking products, and implemented a zero tariff policy. According to customs data analyzed by Paper Industry Network, in February 2023, the import volume of corrugated paper was 328500 tons, a year-on-year increase of 95.65%, and a year-on-year increase of 90.95%. The import volume was US $131.7 million, a year-on-year increase of 99.00%, and a year-on-year increase of 33.94%. According to customs data, the export volume of corrugated paper was 2400 tons, a year-on-year decrease of 29.41% and a year-on-year increase of 41.18%. The export volume was 4.04 million US dollars, a year-on-year decrease of 25.74% and a year-on-year increase of 5.48%

According to customs data, the import of paper has nearly doubled compared to the same period last year, which has had a significant impact on the already overcapacity domestic market. In order to reduce the impact, some paper mills have chosen to reduce inventory pressure and maintain customers through downtime and price reductions. 3. April is not a traditional peak season, and there are still downside risks in corrugated paper prices. However, due to the continued compression of profit margins and the regulation of the paper mill's own production capacity, the downside space for paper prices may narrow.