Core Viewpoint - The domestic white cardboard market is experiencing a price increase after a prolonged period of low prices, with major companies announcing a price hike of 200 yuan/ton effective November 1, 2025, indicating a recovery in the industry after five years of decline [1][2]. Supply and Demand - Both supply and demand for white cardboard in China have shown a rising trend, with monthly production increasing from 689.4 thousand tons in January 2023 to 1,076.2 thousand tons in October 2025, and monthly consumption rising from 540.37 thousand tons in January 2023 to 809.42 thousand tons in September 2025 [2]. - The supply-demand gap has narrowed from 308.97 thousand tons in January 2025 to 255.68 thousand tons in September 2025, contributing to price recovery [2]. Production and Inventory - The operating rate in the white cardboard industry has slightly increased, reaching 62.65% in October 2025, up by 3.16 percentage points year-on-year, indicating improved production enthusiasm among manufacturers [3]. - Inventory levels have decreased, with the monthly production inventory days dropping to 13.72 days in October 2025, down by 6 days year-on-year, suggesting effective destocking [3]. Profitability - The price of white cardboard has been on an upward trend since September 2025, while the cost of raw materials, particularly wood pulp, has decreased, leading to a recovery in profit margins [4]. - In October, the price of white cardboard increased by 2.44%, while production costs fell by 0.24%, resulting in a 2.91 percentage point increase in profit margins [4]. Market Concentration - The white cardboard industry has a high concentration level, with the top four companies (CR4) holding a market share of 77.33% in 2024, which provides them with significant pricing power [5]. - Major players like Jin Guang Paper, Bo Hui Paper, and Jiu Long Paper are expected to improve their profitability through economies of scale and operational efficiency as the market recovers [5].