Judging from the price fluctuation characteristics of the ivory board market in the past five years, the price in July and August this year was below the lowest value in five years. Although the price rebounded in September, it is difficult to rise below the lowest value in recent years based on the current upward trend. It can be seen that the market operation pressure has been relatively high this year. Since the end of the first quarter, the price of FBB has fallen below the low of nearly five years. In the third quarter, the market has begun to bottom out, but the overall paper price is at a low level.
Judging from the seasonal fluctuations of folding box board in the past 10 years, the third quarter is usually the transition point between the off-peak and peak seasons, and paper prices have turned from falling to rising. This year's market trend is generally in line with seasonal fluctuations. Due to low paper prices, rising costs, and improving supply and demand, paper prices have rebounded since August higher than the average level of previous years.
According to the profit situation of C1S ivory board, the price of it has continued the downward trend since the second half of last year overall this year, running below the cost line most of the time. The long-term price inversion has put pressure on the profits of paper mills. Although the price of pulp, the main raw material, has experienced a rapid decline since February, it has shown a volatile upward trend since reaching the bottom in June, and cost pressure continues to increase. Against this background, paper mills have become more motivated to raise prices in the third quarter. From July to September, large-scale manufacturers have issued a total of three price increases, with a total increase of 600 yuan/t, in order to improve profitability.
Post time: Nov-10-2023