Corrugated paper prices in China have recently seen an upward trend as supply side weakens amid strong demand dynamics
The corrugated paper prices in China has shown noticeable upward momentum recently. This upward trend has been consistent across domestic paper mills, which has prompted paper mills to actively ship their products, leading to reduced inventory levels and higher operating rates. This production ramp-up has consequently driven stronger demand for wastepaper as a key raw material. The pricing momentum has been further reinforced by leading paper companies raising their wastepaper procurement prices, triggering a wave of price adjustments across mills nationwide from southern to northern regions.
Supply conditions have become more favorable in recent days as packaging factories increased their purchasing activity, drawing down paper mill inventories and encouraging more active production. The corrugated paper market has also benefited from easing trade tensions, with improved demand expectations helping to stabilize and support market prices. This development has been particularly significant for raw paper pricing, effectively halting previous declines and creating a more balanced supply-demand environment.
On the demand side, the latest round of Sino-U.S. economic and trade talks has yielded positive outcomes, including substantial reductions in bilateral tariffs. This progress is expected to stimulate domestic demand for corrugated paper while boosting market confidence. The improved trade environment is already providing a measurable lift to China's export sector, with downstream packaging factories reporting slightly better order volumes compared to previous periods. The uptick in orders has led these packaging producers to moderately rebuild their raw paper inventories, contributing to increased market activity and more robust trading conditions.
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Looking ahead, the tariff reductions between China and the U.S. are likely to usher in a period of heightened export activity for paper products. As commodity exports regain momentum, domestic demand for packaging materials is expected to see a corresponding, albeit potentially temporary, improvement.
