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The corrugated paper market in China has shown signs of softening recently in July 2025, with prices witnessing a downward pressure. This downward trend in waste paper prices reflects increased supply from packaging stations amid rainy weather conditions, leading to higher inventory levels at paper mills.

On the production side, stable operations at manufacturing facilities have maintained high industry inventories of corrugated paper. Some mills have begun implementing price reductions to manage growing stockpiles, particularly as profitability concerns persist. Several producers reportedly face financial losses, potentially dampening future production activity if market conditions fail to improve.

Demand remains constrained by seasonal factors, with July traditionally representing a low period for corrugated paper consumption. Domestic orders show limited strength, while export uncertainty has grown with the impending expiration of the 90-day tariff arrangement between China and the United States. This combination of ample supply and tepid demand suggests continued pricing pressure in the near term, with mills likely to maintain competitive pricing strategies to stimulate order volume. Market participants will closely monitor inventory adjustments and potential production curtailments that could influence price stability moving forward.