Nine Dragons Paper Kicks Off Third Round of Hikes in Nine Days: 100-150 Yuan/Ton at Multiple Bases from Oct 21; Henan Mills Raise 200 Yuan/Ton on Oct 20

After issuing notices on October 11 and October 15, Nine Dragons Paper sent out six price increase notices in a third round within nine days. Dongguan, Taicang, Tianjin (Hebei), Shenyang, Quanzhou and Chongqing (Leshan) will adopt new prices from October 21, October 25 and November 1, with products generally rising by 100-150 yuan/tonne. On the same day, a large number of small and medium-sized paper mills in Henan also issued price increase notices, lifting base paper prices by a uniform 200 yuan/tonne from October 20.

In this round of notices, Nine Dragons Paper again described the adjustment as a last-resort move to recover only part of the cost increase. It also mentioned for the first time:

The company pointed to enormous cost pressure from rising bulk commodities and raw and auxiliary materials, saying business operations were under severe strain.

Since late September, the price increase crisis has kept spreading. Packaging costs have climbed steadily, and upstream paper mills have also seen costs rise. Coal, waste paper and even auxiliary materials have reached levels that threaten the health of the entire industry chain. In waste paper, for example, Nine Dragons' recent consecutive price hikes have pushed the whole market higher. The domestic waste paper market can complete a round of increases in just two or three days, and Nine Dragons, Shanying, Lee & Man and others have abandoned a reserved approach to compete with many small and medium-sized mills for waste paper.

The Henan mills' increases this time are mainly in corrugated paper, whereas Nine Dragons raised prices across its full product range.

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

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

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.:

With raw material prices continuing to rise recently, production costs and various expenses have increased. To ensure long-term stable cooperation, the company is making an appropriate adjustment to its original sales prices. Effective from 8:00 a.m. on October 20, 2021, prices will rise by 200 yuan/tonne on top of the original sales prices; prepayments already made are also covered by this adjustment.

Xinxiang Henry Environmental Protection Technology Co., Ltd.:

Bulk materials (coal/chemical auxiliaries/domestic waste paper) have soared recently. Coal has reached 2,500 yuan/tonne, and production may be halted at any time due to coal shortages. Together with the recent impact of dual control, production costs have risen sharply. The company has compressed costs and improved efficiency as much as possible but still cannot absorb the cost pressure. To ensure a continuous and stable supply of high-quality products, it is making an appropriate adjustment to base paper prices. Effective from October 20, 2021, prices will rise by 200 yuan/tonne on current sales prices.

Yuanshi County Jinrun Paper Products Co., Ltd.:

Because rising raw materials have made the burden truly unbearable, after considering multiple factors, the company's corrugated paper will rise by 200 yuan/tonne from October 20, 2020. (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, the company's production costs remain elevated. To continue supplying customers with high-quality products and services in a stable manner, the company has decided that from October 20, 2021, prices will rise by 200 yuan/tonne on current sales prices. (Existing orders already accepted but not yet completed are also within the scope of the increase.)

Wugang Huanneng Technology Co., Ltd.:

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

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