Market, Not Mills, Sets Prices: Lessons From a Rolled‑Back RMB100/Ton Paper Price Hike

Quick follow-up to last week’s price hike discussion.
In my previous post, I mentioned the 100 RMB/ton price increase. Interestingly, one of the paper mills we work with tried to push it through last week.
The result: most clients chose to wait and see — orders were put on hold.
Within days, the mill backed down and quietly returned to the previous price.
What does this tell us?
The downstream market simply isn’t absorbing higher costs right now.
Domestic pulp supply is stable and filling the gap — even if Quality varies slightly.
International mill shutdowns and supply cuts don’t automatically translate to pricing power when demand is flat.
The mills can announce increases. The market ultimately decides whether they stick.
A small data point, but a telling one. And this is exactly why we haven’t adjusted our prices — our export quotations remain stable for now, with a smooth transition.

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