Multiple Paper Companies Release April Price Increase Notices; Industry Profitability Recovery Capacity Continues to Strengthen

Securities Daily Reporter Wang Xi

Entering late March, the price increase wave in the packaging paper industry has been intensifying. After two rounds of price hikes in early and mid-March, Nine Dragons Paper (Holdings) Limited (hereinafter referred to as “Nine Dragons Paper”) recently issued its third price increase notice this month, clearly stating that prices will continue to rise in April with a single increase of 50 yuan/ton. Meanwhile, several white cardboard paper companies are also announcing price hikes; Shandong Bohui Paper Co., Ltd. and other leading paper companies have announced a white cardboard paper price increase of 200 yuan/ton starting April 1.

Regarding the reasons for these frequent price hikes, paper companies repeatedly mention in their notices that “due to the impact of geopolitical tensions, energy prices have surged dramatically, leading to significant increases and supply instability in related chemical products, with operating costs continuously rising.”

This external factor is rapidly transmitting through the industry chain. Data from Datong Securities monitoring the week of March 9 to March 15 shows that the average price of corrugated paper increased by 70 yuan/ton during that week, while the prices of carton board, white cardboard, and whiteboard paper remained stable. “Currently, downstream carton manufacturers are also adjusting prices accordingly. Coupled with the urgent need for resumption of work downstream, the probability of continued upward movement in paper prices is high, and the industry’s profit recovery ability is steadily strengthening.”

For the “recycled paper” corrugated and carton board industry, data from Zhuochuang Information Co., Ltd. (hereinafter “Zhuochuang”) shows that, from supply and demand perspectives, after the Spring Festival holiday, market supply and demand tensions eased. Supported by sharp fluctuations in costs, mainstream domestic corrugated paper prices showed an upward trend in early March.

“Major paper mills releasing price increase notices for April not only continue to boost market bullish sentiment but also, with recent slight rebounds in raw material recycled paper prices and manageable inventory pressures, provide support for price increases,” said Li Li, a market analyst at Zhuochuang for corrugated paper, in an interview with Securities Daily.

Industry insiders believe that for the “pulp paper” white cardboard paper industry, looking at the trend of broadleaf pulp prices since 2026, overseas pulp companies have continuously raised export prices from January to March. Due to shipping cycle impacts, this round of price increases is expected to transmit to the domestic spot market. In March, domestic broadleaf pulp spot prices stabilized with slight increases, providing temporary cost support for paper companies’ subsequent price hikes.

It is noteworthy that this is a critical window for the new round of weekly price negotiations among pulp and paper companies. Chang Juntao, an analyst at Zhuochuang, told Securities Daily: “International pulp mills are concerned about rising costs and intend to raise export prices, but domestic raw paper processing margins are limited, and acceptance of high-priced raw materials is generally low. Therefore, the current market is cautious. However, as previous overseas price increases gradually transmit to the domestic market and with April price hikes by paper companies, cost support is expected to gradually manifest in the second quarter.”

Amidst increasing cost volatility, leading companies with integrated pulp and paper operations are leveraging cost advantages to achieve rapid growth.

Nine Dragons Paper’s latest financial report shows that for the six months ending December 31, 2025, the company’s net profit attributable to shareholders surged by 318.8% year-on-year. Nine Dragons stated that by establishing a self-controlled raw material supply system, it effectively hedges against fluctuations in imported wood pulp prices and lays a solid foundation for high-end and differentiated product upgrades.

Additionally, for the packaging paper industry, recent local policies are actively supporting industry upgrades. According to a public notice issued in March 2026 by the Department of Industry and Information Technology of Guangxi Zhuang Autonomous Region, three companies—Guangxi Jianhui Paper Co., Ltd., Nine Dragons Paper (Beihai) Co., Ltd., and Guangxi Xianhe New Materials Co., Ltd.—have been selected for inclusion in the 2026 Guangxi Zhuang Autonomous Region’s support list for industrial revitalization projects (major industrial projects and industrial optimization upgrades).

Datong Securities believes this will promote the local papermaking industry toward higher-end and more refined development. Analyst Yang Suting from Datong Securities stated that the current stage is critical for the simultaneous recovery of profitability and industrial upgrading in the paper sector. Industry prosperity is gradually recovering, combined with leading companies’ coordinated price support and steadily improving capacity utilization, which continues to optimize the competitive landscape and development quality of the industry.