SunSirs: Domestic Paper Companies See Widespread Price Hikes

As we enter April 2026, the domestic paper market is experiencing a period of widespread price increases, with prices for mainstream categories such as corrugated paper, white cardstock and containerboard continuing to rise. This round of price increases is not driven by a single factor, but rather is the result of the combined effects of raw material costs, energy and chemicals, supply and demand dynamics, and industry-wide coordination, with price transmission across the supply chain exhibiting a clear chain-like logic.

I. Price Trends for Core Products and Raw Materials

As a core category within the packaging paper sector, On April 22, the benchmark price for corrugated base paper, as reported by SunSirs, stood at RMB2,668.00 per ton—a decrease of 5.46% compared to the beginning of the month (RMB2,822.00 per ton).; White cardboard, a core category for high-end packaging and cardboard, had a benchmark price of RMB 7,400 per ton on 23 April, up RMB 200 from RMB 7,200 per ton at the beginning of April, representing a 2.8% increase.

On the raw materials front, the SunSirs benchmark price for softwood pulp, a core raw material in the wood pulp category, stood at RMB 5,020 per ton on 23 April, up RMB 70 from RMB 4,950 per ton at the beginning of April, representing a 1.4% increase; the price of hardwood pulp, a general-purpose raw material in the wood pulp category, rose from RMB 4,710 per ton to RMB 4,780 per ton over the same period, also up by RMB 70, a 1.5% increase. The benchmark price for AA-grade waste paper, a core raw material for recycled paper, rose significantly. On 23 April, it stood at RMB 1,530 per ton, up RMB 50 from RMB 1,480 per ton at the beginning of April, representing a 3.4% increase.

II. Key Reasons for Price Increases in the Paper Industry

(1) Raw Materials: Rigid cost increases have raised the baseline for paper production costs

1. Wood pulp: Driven by import dependency and tight supply, prices have risen steadily. Wood pulp is the core raw material for wood-based papers (white cardstock, cultural paper), with domestic reliance on imports exceeding 60%. In April, international wood pulp spot prices remained stable. Whilst domestic port inventories remained high, spot market supply was tight. Coupled with slight fluctuations in shipping costs, prices for both softwood and hardwood pulp rose simultaneously, with costs increasing by RMB 70 per ton respectively. This directly drove up production costs for wood pulp-based papers, serving as the core driver behind the price increase for white cardstock.

2. Waste Paper: With a shortage of raw materials for recycled paper, price increases have led the market. As the primary raw material for corrugated paper and recycled craft paper, AA-grade waste paper saw a price increase of 3.4% in April, far exceeding the rise in wood pulp prices. Due to a seasonal decline in waste paper collection volumes, stricter sorting standards and tighter collection controls in certain regions, the supply of waste paper has been temporarily tight. As a result, procurement costs for paper mills have continued to rise, with cost pressures being most pronounced for packaging paper made from waste paper. This is also the direct catalyst for the frequent price increases in corrugated paper and containerboard.

3. Chemical Auxiliaries: Energy Cost Pass-Through + Supply Fluctuations, Widespread Rise in Auxiliary Costs. Prices for chemical products required for paper production, such as caustic soda and light soda ash, have risen in tandem, with increases exceeding 4% across the board.

(II) Supply and Demand: Capacity Control + Demand Recovery, Improved Supply-Demand Dynamics

1. Industry-wide coordinated production cuts have led to a contraction in supply. Faced with cost pressures and sluggish industry profitability, leading paper manufacturers have proactively implemented strategies such as production halts for maintenance and output control to stabilize prices. This has reduced the supply of low-priced goods in the market and prevented cut-throat competition within the sector. The orderly contraction of supply has alleviated market inventory pressures, creating room for paper price increases and reversing the previous passive situation of oversupply.

2. Recovery in downstream demand, with essential demand underpinning price rises. In April, the resumption of manufacturing operations accelerated, with demand for e-commerce logistics, food packaging and industrial packaging rebounding. Downstream cardboard mills and packaging enterprises saw an increase in order volumes, strengthening the essential demand for corrugated paper and white cardboard. As downstream demand absorption capacity improved, price increases by paper mills were successfully passed on to the end-user market, preventing price hikes from falling flat due to weak demand.

(3) Cost pressures + profit recovery: Price increases are justified

The core logic behind this round of price increases in the paper industry is: rising costs of upstream raw materials → cost pressures on midstream paper manufactures → passing on these pressures through price hikes → restoring industry profitability. This presents three key characteristics: Firstly, tiered price increases, with the magnitude of the rise determined by cost sensitivity. Waste paper-based packaging paper (corrugated paper) has seen a faster pace of price increases due to higher rises in waste paper costs; wood pulp-based white cardboard, driven by both wood pulp and chemical additives, has seen more significant increases; Differentiated price adjustments across paper types based on cost structures align with the natural laws of cost transmission within the supply chain.

III. Outlook: Cost Support Remains, Uptrend Stabilizes

In the short term, there are no clear signs of a significant decline in raw material prices such as wood pulp, waste paper and chemical additives, whilst pressure from energy and supply constraints persists, providing robust cost support for the paper industry; coupled with a steady recovery in downstream demand, paper prices are expected to maintain a stable trajectory.

Overall, the price increases in the paper industry in April 2026 are the result of a convergence of three factors: cost drivers, improved supply and demand, and industry coordination. The logic of price transmission between upstream and downstream sectors is clear: rising raw material costs are the core catalyst, while the optimization of the supply and demand landscape provides crucial support. The industry is currently achieving cost transmission and profit recovery through reasonable price adjustments.

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