Dec/27th/2024

In recent days, the packaging paper market has seen a notable upward trend. In the white cardboard sector, mills have issued frequent price-hike and production halt notices. Leading mills like Nine Dragons Paper plan to raise prices by 400 yuan/ton from Jan - Feb 2025, following an earlier 200 yuan/ton increase in early Dec.

Kong Xiangfen of Zhuochuang Information said factors like supply tightening, pre-holiday restocking, and better sentiment have strengthened white cardboard prices. From Dec to Dec 26, the 250g white cardboard averaged 4,235 yuan/ton, up 1.86% from Nov.

For corrugated and containerboard, the AA-grade 120g corrugated paper averaged 2,929 yuan/ton from Dec to Dec 26, up 5.74% from early Dec. Fang Juntao of Zhuochuang said export recovery and manufacturing expansion boosted demand. After a slump until Sep, corrugated paper prices rebounded in Oct and rose sharply in Nov - Dec. Export growth, driven by Western holidays and exporter concerns, is the main demand driver.

The cultural paper market is also rebounding. After early Dec price hikes of 200-300 yuan/ton, more mills are raising prices for 2025. From Dec to Dec 26, 70g wood-pulp offset paper averaged 5,357 yuan/ton (up 4.42% from Nov), and 157g art paper averaged 5,485 yuan/ton (up 2.27% from Nov).

Zhuochuang's Yin Ting expects supply to shrink slightly in 2025, providing phased price support, while export driven demand may weaken but domestic rigid demand remains.

A Galaxy Securities report suggests the papermaking industry may enter a new up - cycle as domestic demand improves after a short-term recovery.