As the first quarter of 2026 concludes, the paper industry is showing clear signs of structural adjustment rather than a simple cyclical shift. Cost pressure remains elevated, demand patterns are diverging, and policy-driven transformation is gaining momentum. 

From Golden Paper's On the raw material side, imported pulp prices continued to fluctuate at high levels throughout the quarter. Maintenance shutdowns at major global pulp mills, combined with unstable logistics, disrupted supply consistency and kept prices from easing. At the same time, the narrowing price gap between softwood and hardwood pulp reduced the flexibility for cost optimization. Under these conditions, some small and mid-sized mills have begun adjusting operating rates to better manage risk. 

Demand trends are no longer uniform. Packaging paper exports are showing gradual recovery, supported by improving demand from Southeast Asia and the Middle East. In contrast, the domestic market presents a more mixed picture. Cultural paper demand saw a short-term boost driven by seasonal educational publishing, while tissue paper remained stable but faced ongoing margin pressure due to intensified price competition, especially across e-commerce channels. 

Policy developments are accelerating industry restructuring. China has released its first batch of outdated capacity elimination targets for 2026, with approximately 1.2 million tons of capacity in corrugated and containerboard segments set to exit the market. Meanwhile, leading producers are investing in cleaner production lines and increasing the use of recycled fiber, aligning with the continued rollout of plastic substitution policies. 

Overall, the direction of the industry is becoming clearer. High costs are reshaping production decisions, demand divergence is redefining market priorities, and regulatory pressure is raising the threshold for competition. In this evolving landscape, companies with stronger scale and supply chain capabilities are expected to expand their market position.