Affected by rising pulp costs, in April, there was frequent news of production cuts and shutdowns in the paper industry. It was blamed as a “production limit and price guarantee” act. However, the market reaction was lukewarm. Prices and shipments of major types of paper did not improve significantly, and the industry faced heavy inventory pressure. Currently, this round of shutdowns is limited to small and medium-sized paper companies in Hebei. Most of the leading paper companies say “production and operation are normal,” but due to high costs and weak demand, the main types of paper are struggling at the profit and loss line, and the outlook for paper production in Q2 is not optimistic.