Weekly Review of Waste Paper Quotes (8.11 - 8.15)

Last week, domestic waste paper market transactions improved, with sufficient inventory and stable supply. Starting from September, the domestic paper industry will enter the peak season of production. At present, the paper mills have begun to increase the procurement of raw materials, and the operating rate has also increased significantly. They are ready to prepare for the arrival of the season. Recently, the price of waste paper began to level off, and the prices of daily waste and European waste of some labels began to loosen. But overall, it is expected that the price of waste paper will remain high for some time. From the perspective of the total cost of the industry, the cost has risen.

Due to factors such as the Olympic Games, the consumption of newsprint in China has increased by about 10%. After the Olympic Games are over, the short-term stimulus brought about by the Olympics will be reduced. At that time, we should focus on the resumption of excess production capacity. However, newsprint should be more optimistic than the previous market expectations.

Trading in Zhejiang is active and stocks increase, but actual trading volume is small. Due to the hosting of the Olympic Games and the adoption of restrictions, China’s buying of foreign waste paper has continued to be suppressed. According to local customers, the recent demand for paper mills in Jiangsu and Zhejiang has picked up, and gradually began to enter the market for purchases. The volume of daily discarded orders has increased, and the market is expected to recover.

In Shandong, the waste paper transaction started to improve, and the price quoted in the upstream declined compared with the previous period. In Qingdao, Huangdao, Weifang and other ports in Shandong, there are a large number of American wastes and a small amount of European wastes arriving in Hong Kong. The varieties are concentrated in waste newspapers, corrugated paper, and a small amount of wrapping paper. According to merchants, the market is mainly based on futures trading, with a small amount of spot transactions. Downstream manufacturers are active in purchasing, demand for materials is still evident, and the demand for newsprint is steadily rising.

Waste paper trade in Jiangsu area is good and supply is stable. In Changshu, Lianyungang, Taicang and other ports in Jiangsu, there are a large number of American wastes and a small amount of daily waste, and European wastes arrive in Hong Kong. The varieties are concentrated in old newspapers, corrugated paper, and waste paper. According to merchants, the demand for newsprint from downstream customers is still relatively strong, and upstream suppliers have sufficient inventory and supply is rapid.

The situation of the waste paper market in Fujian has improved and the transaction volume has increased. This week, the imported waste paper from the Fuqing Jiangyin Port and Haishu Port in Fujian Province is mainly from the United States, Britain, and Germany. According to the customer's feedback, the downstream customers have more noticeable demand for newsprint and special paper. Upstream traders gradually increase the amount of imported waste paper to meet the current market demand.

With the continuous increase in domestic production of waste paper as a raw material production line, the domestic paper industry’s dependence on imported waste paper continues to increase significantly. According to the statistics of all types of imported waste paper arriving in Hong Kong in June 2008, the total amount of imported waste paper imported to China from January to June 2008 was 12.207 million tons, an increase of 3.7% compared with the same period of last year. Among them, a total of 5.145 million tons of waste paper was imported from the United States, an increase of 10.4% over the same period of last year, which accounted for 42.1% of the total number of source countries. The data shows that since the beginning of this year, various kinds of domestic waste paper have continued to show significant growth, showing that the dependence of the domestic paper industry on imported waste paper continues to rise, while the United States continues to be the largest source of waste paper in the country.

Last week, U.S. Waste 9# was quoted at 295 U.S. dollars per ton, Euro OCC was quoted at 218 U.S. dollars per ton, U.S. scrap 8 was quoted at 288 U.S. dollars per ton, scrap books were offered at 1,200 yuan per ton, used newspapers were 2,450 yuan per ton, and waste cartons were used. Price 2000 yuan / ton; white coated paper offer 1780 yuan / ton.