Why is the price of waste paper up and down?

Recently, the price of waste paper has turned into an extreme trend, and the market has explored the reasons for it.

From October 23 to 25, 60 paper mills across the country raised the purchase price of waste paper by 80-700/ton. According to industry analysts, the current paper mills in Jiangsu, Zhejiang and Shanghai have increased the purchase price of “national waste” to the volume of goods, while the mentality of the packaged station has gradually warmed up. It is expected that there will still be room for upward adjustment of “national waste” prices in the short term.

Previously, from October 17 to 18, 42 paper mills in the country's 66 paper mills cut their purchase prices, with a drop of 30-500/ton. Among them, Guangdong Dongguan Jianhang Paper waste paper price has dropped by 910/ton from 14th to 17th, only 4 days. According to the market, domestic waste paper prices have plunged. Due to the early release of demand in September, the short-term period after the holiday was in a flat period. In particular, the paper industry leader Xiaolong lowered the recycling price of waste paper and caused the chain reaction of the industrial chain. Small and medium-sized paper enterprises have reduced the waste paper. Recycle the price.

It plummeted nearly a thousand a week ago and skyrocketed 700 after a week. Whether this kind of face-changing market continues, whether the price of waste paper can be stabilized in the near future has become a topic of concern to the market.

The mainstream view is that the fourth quarter is the peak season for downstream consumption. It is expected that after the “Double Eleven”, the inventory of the carton factory will be better. In the next month, the price of paper will rise steadily. After the inventory in November, the price upward momentum will continue to increase. Under the trend of environmental protection and high pressure normalization, the industry continues to concentrate on paper-based enterprises, and the increase in bargaining power makes the rise in raw material prices positive for enterprises.

It is understood that since 2017, various paper mills have raised the purchase price of waste paper almost every month. Industry analysts believe that there are two main reasons for the increase in the price of discarded newspapers. "First, the state banned the import of waste paper, followed by the government's environmental pollution control of papermaking enterprises. Under the combined effect of these two factors, the price of waste recycling has risen. According to professionals, foreign waste paper has long been favored by many domestic paper mills because of its lower price and better quality. In mid-August 2017, in the new edition of the “Import Waste Management Catalogue” issued by the Ministry of Environmental Protection, unsorted waste paper has been adjusted from restricted imports to prohibited imports, and recycled (waste) paper and cardboard have been included in the “ban”. List". In September 2017, the average price of waste paper reached 2960/ton. In the same period of 2016, the price was only 1240/ton, an increase of 139%.

In response to the market plunging skyrocketing market, the industry believes that the soaring price of waste paper has caused many paper mills to supply and demand for short-term storage. The paper mills have to purchase paper waste by price reduction, thus forming a seesaw effect.

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