On July 23, three major white paper suppliers in the Pearl River Delta—Qilong, Liwen, and Jianhui—announced new price hikes for whiteboard paper. This move has sparked questions: will these manufacturers repeat the same pattern as in March, potentially triggering a buying rush?
According to the price increase notices received by color printing and packaging factories, Liwen and Jianhui raised prices by 100 yuan per ton, while Qilong increased by 50 yuan. All three companies cited rising raw material costs and operational expenses as the main reasons behind the price adjustments. The fact that they all announced the increase on the same day suggests it was a coordinated move, likely aimed at maintaining profitability amid tight margins.
However, the impact of this price hike is expected to be significant, especially on color box packaging companies. These businesses are already under pressure due to multiple challenges, including fierce competition and soaring labor costs. Many have tried passing on the increased costs to customers but have met with resistance. In some cases, downstream clients have even reduced their own pricing, squeezing profit margins further.
In recent years, the market for color box packaging has seen a noticeable decline. This is partly due to the loss of orders from industries like footwear, apparel, and electronics to Southeast Asia and India. Additionally, white paper manufacturers in South China and Central China have faced production disruptions, leading to over-supply issues in the whiteboard paper market.
Another factor contributing to the decline is the growing preference for eco-friendly materials. Brands such as Apple and Xiaomi have started using natural cardboard instead of traditional white or gray-coated board. This shift has influenced buyers of mobile phone boxes and shoe packaging, further reducing demand for whiteboard paper.
Domestic demand in China has also been weak for years. Since 2015, import volumes have dropped sharply, with an average monthly decline of nearly 20%. This indicates that the once-strong domestic market has been struggling since 2008, and the situation has worsened in recent years. As a result, orders for color printing factories have plummeted, directly affecting the demand for whiteboard paper.
In March, the previous price increases were driven by several factors: paper mills had built up inventory, packaging factories hadn’t stockpiled enough paper, and outdated production facilities in the Pearl River Delta created panic. However, those conditions don’t seem to be present this time.
From the perspective of color printing factories, the current situation is quite different. The process of producing color boxes is more complex, putting greater pressure on labor costs compared to the more automated paper mills. Over the past three years, many color box manufacturers have found it difficult to remain profitable, with some even stopping orders altogether due to losses.
Overall, this latest price increase may not lead to a buying frenzy as seen before. Instead, it highlights the ongoing struggles of the industry, with weak demand, high costs, and shifting consumer preferences all playing a role.
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