Several paper manufacturers have recently announced simultaneous price increases for white kraft paper products. Among them, both Sun Paper and Wuzhou Special Paper plan to raise the price of their white kraft paper products by 300 yuan per tonne from the current price level, effective March 5th. Data shows that the white kraft paper market has been relatively stable so far this year, with current market prices in the Shandong region around 7,200-7,400 yuan per tonne. Industry insiders suggest that following the Lantern Festival, supply and demand dynamics in the kraft paper market are gradually recovering, supporting expectations for steady to rising market prices.
China Galaxy Securities points out that leading paper companies exhibit a strong willingness to maintain or raise prices. At the beginning of 2026, the paper industry demonstrated a firm intention to support prices, with major players like ND PAPER leveraging multiple price hike announcements to reinforce market expectations. Specifically, ND PAPER increased packaging paper prices by 50 yuan per tonne across its eight major bases starting February 25th. Furthermore, giants such as APP implemented a 200 yuan per tonne price hike for white cardboard after the Spring Festival, with these price increase notices being progressively enacted.
Concurrently, the industry is pursuing a dual strategy of "capacity expansion + technological upgrades." In the tissue paper segment, Wuzhou Special Paper and Hubei Gold Doctor plan to add annual capacities of 50,000 tonnes and 60,000 tonnes respectively, positioning themselves to capitalize on consumption upgrades and the "paper replacing plastic" trend. Within the packaging paper sector, Bengbu Sanxing Paper is advancing a technological upgrade for 150,000 tonnes per year of recycled specialty paper, aiming to enhance automation, improve energy efficiency, and optimize its production capacity structure.
A research report from CICC highlights that the paper manufacturing supply chain currently features a "highly concentrated resource end and a fragmented, competitive processing end." Pulp, as a resource with scarce natural endowments, holds strong pricing power. The report notes that Chinese paper enterprises have now entered a mature phase characterized by competition for market share within a stable environment. Growth driven solely by capital expenditure is becoming unsustainable, leading companies to shift their strategic focus towards utilizing their own fiber resources to hedge against the significant price fluctuations of pulp, which carries strong financial market characteristics.
Related Hong Kong-listed stocks in the specialty paper sector include: ND PAPER (02689), Chenming Paper (01812), and LEE & MAN PAPER (02314).