Core Viewpoint - The domestic paper industry is experiencing a price increase trend, particularly in the packaging paper sector, driven by leading companies and subsequent follow-up by others [1] Industry Overview - Since November, the paper industry has seen a significant price increase, with companies like Shanying International leading the way by raising prices for products such as corrugated paper by 30-100 yuan per ton, with core categories in Guangdong and Zhejiang seeing increases of 50 yuan per ton [1] - Following Shanying International, companies like Nine Dragons Paper have also raised prices for products like kraft paper and boxboard [1] Demand and Supply Dynamics - According to Datong Securities, the paper industry is in a recovery phase from a cyclical bottom, with an improving supply-demand balance [1] - On the demand side, policy stimulation and the recovery of e-commerce logistics are contributing to a steady increase in demand for packaging and specialty paper [1] - On the supply side, the pressure from new production capacity is diminishing, leading to a more balanced supply-demand situation [1] Profitability and Market Position - Despite a year-on-year decline in profits for the paper industry from January to September, leading companies are gaining market share through industry chain integration and cost advantages [1] - The price of paper is expected to rise moderately due to cost-driven factors and recovering demand, enhancing the configuration value of the sector [1] Long-term Outlook - Guotai Junan Securities notes that short-term impacts from overseas supply shocks and changes in supply-demand dynamics in the European and American markets may influence domestic pulp prices [1] - In the long term, changes in pulp usage structure are expected to lower domestic pulp costs, while global cost curves may rise due to wood and energy costs, benefiting integrated paper mills with upstream forest resources and green energy [1]