On November 10th, Business Society reported that from November 12th, the price of all cattle cards and corrugated paper at the Quanzhou base of Jiu Long Paper Industry will be increased by 50 RMB/ton.

Jiu Long Paper Quanzhou Base has raised the price of kraft paper by 50 RMB/ton since November 12th, indicating a tight supply or increased demand in the market, which directly increases the spot price. As a price adjustment action by a large paper-making enterprise, it may drive the overall spot market of the industry to rise, which is generally favorable for short-term spot profits.

The 50 RMB/ton increase in corrugated paper prices reflects an increase in demand or a decrease in supply in the paper market, which has a positive impact on spot prices. The actions of Jiu Long Paper may trigger other manufacturers to follow suit, supporting the strengthening of the spot market. It is evaluated as a general positive, as the increase is moderate and based on adjustments at the enterprise level.

As the main raw material for kraft paper and corrugated paper, the increase in paper prices suggests that the demand for pulp may increase. Combined with pulp futures data, the closing price of the main contract 2601 was 5,468 RMB/ton, up 48 RMB/ton, and the position increased by 8,828 lots, indicating that the market sentiment is heating up. The combination of increased demand expectations and recent price increases has a significant positive impact on futures prices, driving a bullish trend.

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