The price of us waste has soared by 200% and China waste has changed its face rapidly

The price of us waste has soared by 200% and China waste has changed its face rapidly

Recently, affected by the epidemic, there has been a black swan incident of negative oil price in the United States. However, the price of us waste is driven by rigid demand, which has soared sharply. In the case of OCC, prices have soared to 196% in January and will continue to rise. Affected by the rise of waste paper and the rigid demand for packaging paper, some US paper mills have announced that from May 13, the paper tube and paper core will be increased by at least 8%. This is the first price adjustment of the factory in recent two years.
National waste Market: on May 11-12, the price of waste paper suddenly turned down, and 17 paper mills lowered. On May 12, China’s waste market still showed the phenomenon of ups and downs, and the market was mainly adjusted by the manufacturers themselves. It is expected that the market will still have a stable, moderate and weak trend in the later period of operation. It is suggested that the import and export should be adjusted to a good pace.
1. OCC prices have soared to 196% in January and will continue to rise in May
According to US media recycling today, the price of OCC in January was $24 per ton, which had soared to 196% in January as of mid April.
In April, the price of waste raw materials, which had been in a downturn for more than 30 years, rose sharply. Other recycled fibers also benefited. The price of SOP (sorted office paper) also rose, from $45 per ton to $50 per ton in April. Fastmarkets risi believes the price of waste paper will continue to rise to May.
2. Affected by the increase in the price of American waste, the packaging paper factory announced that the price of paper tube and paper core should be increased by at least 8%
According to industry analysis, the slowdown in the production of recycled fiber and the increase in demand for paper packaging during the outbreak are the reasons driving the price rise.
Influenced by the rise in waste paper and the rigid demand for packaging paper, Sonoco Inc. of the United States recently issued a statement saying that since May 13, the price of paper tubes and paper cores sold in North America will be increased by at least 8 percentage points. Doug Schwartz, vice president of paper tube and paper core in North America, said it was the first price adjustment in nearly two years
The price increase is to ease the increase in the price of waste paper as the main source of cardboard tubes and cores. In addition to the rise of paper price, the continuous rise of other cost prices puts Sonoco under great cost pressure. “
3. The import volume of waste paper is gradually decreasing, and the price of waste paper will be stable in the future
1、 The approved import volume of waste paper has gradually decreased over the years
Since 2017, the approved import volume of domestic waste paper has gradually declined. According to the requirements of national policies, zero import of waste paper will be fully implemented by the end of 2020. The import volume of foreign waste is expected to continue to decline in the future. On the one hand, from the perspective of the country of origin of foreign waste import, it mainly comes from the United States, Europe, Japan and other regions. At present, these regions are areas with more serious public health events, and the stability of the source of goods is uncertain in the first half of the year. On the other hand, considering that the first batch of quota in 2019 accounts for half of that year, based on the first batch of decentralized quota in 2020, it is estimated that the actual import volume of foreign waste in 2020 will be 5-5.5 million tons. Up to now, 4.5098 million tons of waste paper have been approved, accounting for 41.94% of the total approved last year.
2、 From 2018 to now, the proportion of approved leading enterprises has gradually declined
In 2018, Jiulong, Liwen and Shanying accounted for 64% of the total amount approved, 8 percentage points more than that in 2019. In 2019, Jiulong, Liwen and Shanying are still the top three paper enterprises with the largest amount approved in China. The approved amount is 31%, 14% and 13%, accounting for 58% in total, and the other 64 paper enterprises account for 42% in total. From January to April 2020, Jiulong, Liwen and Shanying paper enterprises accounted for 53% of the approved quota, which was 5 percentage points behind 2019.
3、 The price of waste paper will be stable in the future
During the May 1st period, first of all, paper enterprises in some parts of the country have plans to stop receiving and stopping raw materials during the May 1st period, and the demand for waste paper has weakened. Secondly, in the near future, some secondary and tertiary factories in the downstream of packaging paper announced May 1 holiday one after another. The delivery of packaging paper enterprises was poor, the delivery and investment were light, the scale of paper enterprises remained unchanged, and a few small and medium-sized paper enterprises reduced 50-100 yuan / ton. In the future, the price of waste paper is still weak. In general, the paper product enterprises cut product prices and temporarily cut production in order to share the current weak demand for a long time and slow down the operation of the industrial chain from upstream to downstream.
In the later stage, it is suggested to focus on the receiving quantity and shipping enthusiasm of the packaging transfer. The price of waste paper is directly affected by it, and there is limited space for further reduction. For the time being, the leading enterprises have an important impact on the short-term trend of waste paper. If the domestic packaging paper enterprises have a long holiday range or time, the short-term waste paper market cannot change the weak market.

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Post time: May-13-2020

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