CHINA’S PAPER INDUSTRY FACES A PRICE ROLLERCOASTER: WHAT’S NEXT?

This content is being republished with the consent of Fisher International and ResourceWise. Read more about Paper Industry at ResourceWise. Mar 18, ‘25

China’s pulp and paper industry is caught in a whirlwind of price hikes, with leading manufacturers, APP, Huajin Group, Nine Dragons Paper, and Sun Paper, gearing up for increases across various paper grades starting in early 2025. But before you panic, here’s the twist: these price jumps aren’t fueled by soaring demand but rather by rising costs, making their long-term viability a big question mark in this high-stakes market.

WHY THE SUDDEN SURGE?

The recent pricing shifts might seem abrupt, but a closer look reveals several driving forces:

• Raw Material Costs on the Rise: Wood pulp and recycled paper are becoming pricier, squeezing manufacturers’ profit margins.
• Energy Bills Through the Roof: Paper production is an energy-guzzler, and skyrocketing fuel and electricity prices are turning
  up the heat on manufacturers.
• Supply Chain Snags: Global logistics challenges are making production costlier and less efficient.
• Green Rules = More Expenses: China’s environmental regulations are pushing the industry toward cleaner, more expensive production methods.

WHO’S RAISING PRICES AND BY HOW MUCH?

To stay afloat, major players are adjusting their pricing strategies:

• APP: In February 2025, a USD 30 per ton (200 yuan/ton) increase was implemented on copperplate (high-quality coated paper) and non-coated paper grades.
• Huajin Group: Cultural paper prices climbed by USD 30 per ton (200 yuan/ton) starting March 1, 2025.
• Nine Dragons Paper: Prices at its Dongguan base jumped by USD 7 per ton (50 yuan/ton) on February 17, 2025.
• Sun Paper: All cultural paper products saw a USD 30 per ton (200 yuan/ton) hike from March 1, 2025.

THE BIG QUESTION: WILL THESE HIKES STICK?

Here’s the tricky part: because these price hikes stem from cost pressures rather than growing demand, their sustainability is uncertain. In China’s highly competitive paper market, where price wars are common, maintaining higher prices could be an uphill battle.

For printers, packaging firms, and other buyers, these increases could mean tighter margins and potential cost pass-throughs to end consumers. If demand doesn’t keep up with rising expenses, we might see price corrections or even fiercer competition among manufacturers.

The paper industry is evolving rapidly, and staying ahead of market fluctuations is key. At Coniferous, we’re committed to keeping you informed and helping you navigate these shifting tides with smarter sourcing strategies.

What’s your game plan in this changing market? Let’s talk strategy!