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The U.S. Paper Waste Would Be Lifted In Advance
May 24, 2018

The China-US trade war, which has lasted for a long time and intensified, finally welcomed the positive news after China-US reconciliation was announced on may 20th. Then, the eagerly awaited " lifting the ban on American waste" finally ushered in a major turn of events - the lifting of the ban on American waste which was supposed to be lifted after June 4th on may 22nd was lifted in advance, and the paper market reacted enthusiastically and the mood was high!
On the morning of may 22nd, a very urgent red tape " notice of inspection and supervision department of general administration of customs on doing a good job in the pre-shipment inspection of imported American waste materials" released by general administration of customs spread rapidly in the industry. People in the carton industry run to tell each other that the policy of " restricting American waste" which has been eagerly awaited for more than 20 days has finally ushered in a significant turn of events.
The release of new documents will not only have an impact on the waste paper market, but also have a significant impact on the base paper market. Specific performance in two aspects:
1. the base paper price may be sharply reduced. Due to the influence of the restrictive import policy of American waste in the early stage, the price of Chinese waste rose sharply in the low season. In the high-quality OCC market of the United States only 70 USD per ton, the national scrap price reached nearly 4,000 yuan per ton at the highest level. After the cost rises, the price of finished paper is also rising. At present, the price of corrugated paperboard in China is generally around 5,000 yuan, and the high-gram base paper even exceeds 6,000 yuan / ton. However, the offshore price of similar products in foreign countries is only 2,500 - 3,000 yuan, which has caused serious upside down. With the import of a large number of low-priced American wastes, the paper price is expected to plummet, and the paperboard carton factory is expected to get breathing space.
2, is conducive to curb market speculation and speculation. Previously, because of the great uncertainty brought by Sino-American trade, some people were lured by huge profits, and all kinds of crazy speculation flooded the market. An old man in Guangdong was killed by others for grabbing waste paper, which severely damaged the market order of paper packaging industry chain. Nowadays, the U.S. waste begins to re-enter the Chinese market, which will slow down these speculative sentiments.
In short, as the current Chinese waste paper and corrugated cardboard market is very sensitive to policy changes, the wind and grass can trigger sharp fluctuations in the market, and the upstream and downstream industrial chain of paper packaging will face great challenges in terms of raw material supply and cost this year. Please respond in advance!