Unlike the past, China market remained inactive after the traditional Chinese New Year this time. By the last week of February, demand for packaging paperboard did not improve. In fact, price of imported kraft-top linerboard dipped further in various parts of the country, adding to a total loss of US$40/tonne since January. Market for locally produced testliner appeared sleepy either.

From the last week of February, however, more Chinese paper companies, led by industry giants such as Nine Dragons and Shanying Paper, began a new round of price hike in sales of their packaging paperboard products. In coated SBS alone, price went up RMB200/tonne. And tier-one containerboard producers in Southern China were contemplating new prices for their recycled fiber based linerboard, after paying RMB50/tonne more to secure steady supplies of clean OCC from the local market.

Apparently, this was to deal with rising fiber cost as price of locally baled OCC edged up at least RMB30/tonne across the country in a week. Looking further, however, market analysts saw that Chinese paper companies, big or small, needed a price increase in finished paper and board sales to fight against the poor market conditions that resulted in widespread loss in production and earnings of the industry in 2018.