China Ivory Board Market at a Standstill
In late April, it was heard that large-sized ivory producers have planned to raise the order-taking price by RMB 500/mt. The ivory board price was expected to reach a level as high as RMB 13,000-14,000/mt earlier this year bolstered by the surging pulp price. But the ivory board market has entered a slack season, and whether or not the price will continue to increase has become the focus of market players.
Based on the recent market fundamentals:
On the supply side, ivory board mills are clearly attempting to hold the price stable by production curtailments. In mid to late April, some producers arranged maintenance which is usually carried out during the Spring Festival holiday. However, uncertainties remained as only some paper machines were shut down in shifts for 3-9 days. On the whole, the ivory board inventory at producers is still at a reasonable level, and some even have relatively low inventory. But the production cuts have consolidated the bearish perception of some market players.
The market demand was relatively dull during the slack season. On the one hand, the ivory board price faces higher downward pressure during slack seasons. On the other hand, major packaging companies have restocked fully due to the previous ivory board price hike, which had overdrawn the ivory board demand in April. Also, the ivory board price sits on a record high, whereas the duplex board price is descending constantly, and the spread between the two is expanding. Therefore, buyers were less motivated to purchase ivory board and some have turned to cheaper alternatives.
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