China’s Paper Industry Sees New Wave of Price Increases as Demand Recovers

Beijing, China — March 4, 2026 — China’s paper industry has entered a new round of price increases, with several major producers raising prices across key product categories including white kraft paper, white cardboard, cultural paper, and packaging paper.

Since the beginning of March, leading paper manufacturers have issued price increase notices ranging from 50 yuan to 300 yuan per ton, reflecting improving market conditions and renewed confidence in industry profitability. Analysts attribute the adjustments to a combination of stabilizing raw material costs and a gradual recovery in downstream demand.

Major Producers Announce Price Hikes

Several major Chinese paper companies have already implemented or announced price increases:

• Shandong Sun Paper Co., Ltd. and Wuzhou Special Paper Co., Ltd. announced that white kraft paper prices will increase by 300 yuan per ton starting March 5.

• Asia Pulp & Paper raised prices for cultural paper and white cardboard by 200 yuan per ton beginning March 1.

• Bohui Paper Co., Ltd. also increased white cardboard prices by 200 yuan per ton.

• Nine Dragons Paper Holdings Limited raised corrugated board paper prices by 50 yuan per ton from February 25, and plans to increase grey-backed white board paper by another 50 yuan per ton on March 25.

Currently, the market price of white kraft paper in Shandong ranges from approximately 7,200 yuan to 7,400 yuan per ton.

Industry Conditions Improving

Industry operating rates have gradually improved as inventories decline and production returns to normal levels. Many of the announced price increases are concentrated between March 1 and March 5, suggesting coordinated efforts among major producers to stabilize market prices.

Cost and Demand Factors

Analysts say the latest price adjustments are being driven by several factors:

• Raw material dynamics: Hardwood pulp prices have been rising internationally since the beginning of the year, while softwood pulp remains under oversupply pressure with relatively lower prices.

• Currency effects: The appreciation of the Chinese yuan has helped reduce some import costs for pulp.

• Shipping cycles: International pulp price increases typically take about two months to influence domestic spot markets, contributing to expectations of higher costs later in the year.

Seasonal Demand Recovery

On the demand side, the period between the Spring Festival and the Lantern Festival is traditionally a peak restocking season for printing and packaging companies. As downstream manufacturers resume operations, orders for cultural and packaging papers have increased month-on-month, supporting price adjustments.

In addition, environmental restrictions and maintenance shutdowns have limited supply in parts of the industry, further tightening the supply-demand balance.

Emerging Growth Opportunities

Beyond traditional paper products, Chinese paper companies are also expanding into high-value specialty materials, including:

• battery separator paper for new energy applications

• medical specialty paper

• semiconductor packaging paper

These segments are expected to create a “second growth curve” for the paper industry as companies move toward higher-value products and advanced materials.