Core Viewpoint - The paper industry is experiencing a series of price increases driven by rising costs, with major companies like Nine Dragons Paper and Jiangxi Lee & Man Paper announcing price hikes for corrugated paper and recycled cardboard starting August 1, 2023 [2][4][5] Group 1: Price Increases - Multiple paper companies have issued price increase notices, marking the fourth round of price hikes this year, with Nine Dragons Paper leading the charge [3][4] - The price increase for corrugated and recycled cardboard is set at 30 yuan per ton, following previous hikes earlier in July [3][4] - The overall trend shows that paper companies have raised prices in March-April, May, and July, indicating a pattern of frequent adjustments in response to cost pressures [4][5] Group 2: Cost Pressures - The primary reason for the price hikes is the tightening supply of raw materials, particularly waste paper, which has significantly increased operational costs for paper manufacturers [2][4] - The average market price for waste yellow board paper as of July 23, 2023, was 1482 yuan per ton, reflecting a year-on-year increase of 2.75% [4] Group 3: Market Dynamics - Despite the price increases, the transmission of these costs through the supply chain remains uncertain due to weak demand and excess supply, leading to competitive pricing pressures among packaging companies [5][6] - The overall industry is facing a supply-demand imbalance, with a projected consumption growth rate of only 1.5% for paper products in 2024, while new production capacity is expected to exceed 10 million tons [6][7] Group 4: Strategic Adjustments - Leading paper companies are focusing on enhancing their core competitiveness through increased R&D investment, full industry chain layout, and collaboration with downstream partners [7] - Companies like Xianhe Co. and Sun Paper are investing heavily in raw material sourcing and production capacity to strengthen their market position and reduce operational costs [7]