Smog and haze weather shrouded for many days, and the paper industry was deeply caught in a storm of production restrictions. Among them, many paper companies in Tianjin, Baoding, Shijiazhuang, and Tangshan in Hebei have limited production rates of more than 30%.

During the current production restriction, only 20 household paper companies in Baoding area scheduled production. The supply and demand pattern has changed, and the price of household paper has increased by 100 yuan/ton. In terms of packaging paper, another increase of RMB 50/ton during the storm has also helped increase corporate profit margins.

      There is an early precedent for the paper industry to limit production due to smog. During the military parade commemorating the 70th anniversary of the victory of the Anti-Japanese War in September this year, Beijing will jointly launch a major event air quality assurance program with the surrounding six provinces, autonomous regions and municipalities. The standard will refer to the safeguard plan during the APEC period.

     The Hebei Provincial Government announced a batch of production-restricted and suspended production lists in the "Hebei Province Air Quality Assurance Plan for the 70th Anniversary of the Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War". And there are more than 200 packaging companies. During the Second World Internet Conference, 1251 companies were suspended and restricted. The six paper giants in Zhejiang Rongcheng, Ji'an, Jingxing, Dayang, Xingzhou, and Rongsheng stopped production and limited production by 30%-50%, and the limited production time was as long as 10-19 days. At the end of November, Jingxing Paper issued a price increase letter, announcing that the full line of corrugated paper and kraft paperboard products will increase by 30-50 yuan/ton. Considering that the Chinese New Year is approaching and the stocks of paper mills are not high, the current production restriction is expected to have a positive impact on the cardboard block.