On July 23, three major white paper suppliers in the Pearl River Delta—Qilong, Liwen, and Jianhui—announced new pricing for their whiteboard paper. This move has raised questions: will these manufacturers push through another round of price hikes, similar to what happened in March, and could it trigger a buying spree?
According to price increase notices received by color printing and packaging factories, Liwen and Jianhui both raised prices by 100 yuan per ton, while Qilong increased by half that amount, at 50 yuan per ton. The companies cited rising raw material costs and operational expenses as the main reasons for the price adjustment. Notably, all three announced the increases on the same day, suggesting a coordinated effort.
However, this price hike may not have the same impact as before. For one, downstream customers—such as color box packaging companies—are already under pressure from multiple challenges, including fierce competition and soaring labor costs. Many color printing factories have tried to pass on the cost to their clients but faced resistance. In some cases, customers even reduced their orders or renegotiated prices.
Moreover, the market for color box packaging has been shrinking in recent years. With many orders shifting to Southeast Asia and India from industries like footwear, apparel, and electronics, demand for packaging has declined significantly. Over the past two months, white paper manufacturers in South China and Central China have also experienced overproduction and production halts, leading to an oversupply of whiteboard paper.
Another factor is the growing trend toward sustainability. Major brands like Apple and Xiaomi are increasingly using eco-friendly natural cardboard instead of traditional white or gray-coated board. This shift has been followed by some mobile phone and shoe box buyers, further reducing the demand for whiteboard paper.
Domestic demand remains weak. Since 2015, China’s paper imports have dropped sharply, with an average monthly decline of nearly 20%. This indicates that the once-strong domestic market has been in a downturn since 2008. As a result, orders for color printing factories have plummeted, and the demand for whiteboard paper has shrunk accordingly.
In March, the previous price increase was triggered by several factors: paper mills had pre-stocked inventory, packaging factories were unprepared, and outdated production capacity in the Pearl River Delta caused panic. None of these conditions seem to be present now.
From the perspective of color printing factories, the situation is tough. The process of producing color boxes involves more steps, putting greater pressure on labor costs compared to the more automated paper mills. Over the past three years, many color box manufacturers have struggled with profitability, and some have even stopped taking orders altogether due to losses.
In summary, while the latest price increase may signal higher costs for whiteboard paper, the current market environment suggests that it may not lead to a significant surge in demand or purchasing activity. Instead, it might highlight the ongoing challenges faced by the entire supply chain.
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