Nine Dragons Paper to Raise Prices Another 150 Yuan/Ton on the 21st as Large Numbers of Small and Mid-Sized Mills Push Through Early Hikes

Following the two price increase notices on October 11 and October 15, Nine Dragons Paper issued six price increase notices for the third time in nine days; Dongguan, Taicang, Tianjin (Hebei), Shenyang, Quanzhou and Chongqing (Leshan) will implement new prices from October 21, October 25 and November 1, with products rising by 100-150 yuan/tonne across the board. In addition, a large number of small and medium-sized paper mills in Henan issued price increase notices on the same day, raising base paper prices uniformly by 200 yuan/tonne on October 20.

In this round of price increase notices, besides continuing to state that "this price adjustment only makes up for part of the price difference from cost increases, and is truly a last resort," Nine Dragons Paper also mentioned for the first time:

"Faced with the enormous cost pressure brought by rising prices of bulk commodities and raw and auxiliary materials, enterprise operations are facing a severe test."

Since late September the price increase crisis has continued to spread, not only pushing packaging costs up step by step, but also driving up costs for upstream paper mills. Coal, waste paper and even auxiliary materials have risen to a level that threatens the health of the entire industry chain. Taking waste paper as an example, driven by Nine Dragons' several consecutive rounds of price increases recently, the waste paper market has been entirely in the red; the domestic waste paper market can complete a round of price increases in almost two or three days, and Nine Dragons, Shanying, Lee & Man and others have also dropped their reserved stance and are competing with a host of small and medium-sized mills for waste paper.

This time the price increases by Henan paper mills are concentrated mainly in corrugated paper, while Nine Dragons raised prices across its full range.

From October 21, the full range of kraft linerboard and corrugated paper at the Dongguan base will rise by RMB/HKD 100 per tonne on top of current prices. From October 25, grey-backed white board and white-top/coated linerboard will rise by RMB/HKD 100 per tonne on top of current prices. From November 1, culture paper will rise by RMB 200 (USD 24) per tonne on top of current prices.

From October 21, Nine Dragons/Hailong/Dilong kraft linerboard, Dilong recycled B paper and corrugated paper at the Quanzhou base will rise by RMB 100 per tonne on top of current prices, and Dilong recycled kraft linerboard will rise by RMB 150 per tonne on top of current prices.

From October 21, Nine Dragons/Hailong/Dilong kraft linerboard and corrugated paper below 100 g will rise by RMB 100 per tonne; Jianglong kraft linerboard, recycled kraft linerboard and corrugated paper of 100 g and above will rise by RMB 150 per tonne. From October 25, grey-backed white board will rise by RMB 100 per tonne. From November 1, culture paper will rise by RMB 200 per tonne.

Tianjin/Hebei Nine Dragons:

From October 21, the full range of kraft linerboard and corrugated paper will rise by RMB 100 per tonne. From October 25, grey-backed white board and white-top/coated linerboard will rise by RMB 100 per tonne.

From October 21, Nine Dragons/Hailong/Dilong kraft linerboard will rise by RMB 100 per tonne; recycled kraft linerboard and corrugated paper (including Leshan corrugated paper) will rise by 150 yuan/tonne. From October 25, grey-backed white board and white-top/coated linerboard will rise by RMB 100 per tonne.

From October 21, the full range of kraft linerboard and corrugated paper will rise by RMB 100 per tonne.

Henan Yadu Paper Co., Ltd.:

Because raw material prices have continued to rise recently, increasing production costs and various expenses, and in order to ensure long-term stable cooperation, we are now making an appropriate adjustment to the original sales prices. This adjustment takes effect from 8:00 a.m. on October 20, 2021, raising prices by 200 yuan per tonne on top of the original sales prices; prepayments already made are also covered by this adjustment.

Xinxiang Henry Environmental Protection Technology Co., Ltd.:

As bulk materials (coal/chemical auxiliaries/domestic waste paper) have soared recently, coal has risen to 2,500 yuan/tonne and there is a risk of production stoppage at any time due to coal shortage; combined with the recent impact of dual control, production costs have increased substantially. Our company has compressed production costs as much as possible and improved production efficiency, but still cannot absorb the pressure of rising costs. To ensure a continuous and stable supply of high-quality products to customers, we are now making an appropriate adjustment to the original paper prices. This adjustment takes effect from October 20, 2021, raising prices by 200 yuan/tonne on top of current sales prices.

Yuanshi County Jinrun Paper Products Co., Ltd.:

As rising raw materials have truly made it hard for the company to bear the burden, after considering many aspects, from October 20, 2020 the company's corrugated paper will rise by 200 yuan/tonne! (All orders not yet shipped will be executed at the new price, including prepayments.)

Henan Shunjie Environmental Protection Technology Co., Ltd.:

Affected by high raw material prices, our company's production costs remain high. To ensure a continuous and stable supply of high-quality products and services to customers, our company has decided that from October 20, 2021 prices will rise by 200 yuan/tonne on top of current sales prices. (Existing orders already accepted but not completed also fall within the price increase.)

Wugang Huanneng Technology Co., Ltd.:

Affected by the recent rise in prices of raw and auxiliary materials such as raw coal and chemicals, and to ensure our company's normal production and operation, the company has decided after study that from October 20, 2021, all of our products will rise by 200 yuan/tonne on top of the previously executed prices. (Undelivered orders fall within the price increase.)

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378470.html