Weak demand for corrugated paper in China caused its prices to decline in April

Corrugated paper prices in China decreased in April as the demand in off-season for raw materials by paper mills diminished. Concurrently, there was a significant increase in the availability of recycled yellow cardboard, leading to high inventory levels at packaging stations. Corrugated boards are often made from paperboard, including yellow board paper, due to its strength and rigidity.

The overall increase in the arrival volume of waste yellow cardboard at paper mills led to a reduction in its purchase price. With only slight fluctuations in the operations of paper mills and a limited overall improvement in finished paper sales, the revival of interest in the demand for waste yellow board paper was weak. The performance of terminal market orders was poor, with insufficient market orders worsening industry competition.

Read More About Paper Board Production Cost Reports - Request Free Sample Copy in PDF

There was an uptick in prices around mid-April, influenced by the rising costs of raw materials, including waste paper (which is recycled into new paper products). This increase in raw material prices prompted paper mills to raise their costs. Despite this, the overall market sentiment remained passive amidst high net supply, and this brief upward momentum in prices quickly reversed, returning to a downward trend.

With the May Day holiday approaching, a modest increase in demand was anticipated, potentially prompting downstream packaging factories to augment their inventory spaces. However, the weak follow-up on new orders from downstream entities tailed-off the inclination of inventory owners to replenish inventories, exerting further downward pressure on corrugates paper prices.