influenced by the international financial turmoil, the price of domestic waste paper has dropped sharply since the second half of 2118, or September 2119, and it has been in fall in price every day. As the raw material of paper mill, the steep drop of waste paper recycling price is a reflection of the current situation of China's paper industry. Nowadays, the global economy has entered a period of weakness, and the financial tsunami has spread to the paper industry. What does the price reduction of waste paper mean to the future paper price, especially the price trend of newsprint, which is bound to have a far-reaching impact on the future development of news, publishing, printing, packaging and other industries.

the purchasing volume of raw materials of paper enterprises decreased, and the average decline of waste paper in various places was 51%

On October 21th, Guangdong's waste paper market fell sharply, with few transactions. On October 29th, the waste paper market in Shandong was abundant, but the price of waste paper plummeted, which led to the transaction being deserted. The recycling prices of old newspapers in Beijing, Shanghai and Tianjin have been falling continuously since the beginning of October, from the original 2 yuan per kilogram to the present 1.4 yuan-1.5 yuan per kilogram, with an average drop of about 51%. At the same time, the recycling price of waste paper in Hong Kong also dropped by 51% within 1 months.

In less than a month, the price of waste products has dropped so much that Li Jian, dean of the Institute of Circular Economy of Tianjin University of Technology, believes that the international financial turmoil is very close to people's lives, and waste recycling is one of the obvious influences.

according to relevant media reports, since September, among all kinds of waste paper imported from various countries in China, the prices of all kinds of waste paper in other countries have declined to varying degrees, except for the daily waste No.3 mixed waste paper.

According to industry analysts, the sharp drop in waste prices is related to the international financial crisis. Jiang Zongquan of Shanghai Waste Materials Industry Association said: "The recycling industry mainly provides raw materials for industrial production. Now the international financial crisis has affected the real economy, and the price of waste products as raw materials has also fallen. At the same time, consumers' demand for Z products has declined, and manufacturers have also reduced the purchase of raw materials. After the supply exceeds demand, the price of waste recycling has also dropped. "

The profit of the paper industry declined in the third quarter

As the raw material of some paper mills, the price of waste paper continued to fall because of the decreasing demand of enterprises. And the whole paper industry is also facing the situation of declining performance. As of October 29th, among 13 paper companies, such as Huatai and Sun Paper, which have disclosed the third quarterly report, the performance of paper companies in the third quarter decreased by nearly 51% from the previous quarter.

Li Shixin, chief analyst of Guosen Securities' paper industry, believes that after experiencing rapid growth in the first half of the year, the paper industry began to meet the demand in the second half of the year. "The overall economic situation is declining, and downstream customers are hoarding goods, which is the main reason for the gradual deterioration of supply and demand during this period."

Zhou Haichen, an analyst of Shen Yin Wanguo Paper Industry, said: "The third quarter is the off-season of paper sales, so the sales volume is definitely worse than the second quarter. Moreover, when the price of newsprint rose to a high price of more than 6,111 yuan/ton, it was dissatisfied by downstream paper companies. These companies hoped to lower the price of newsprint by the off-season, so the purchase volume decreased. "

according to the published quarterly data, the inventory in the fourth quarter will continue to bring greater cost pressure to the relevant paper companies, which will also make them unable to benefit from the fall in raw material prices in the short term.