November review
In November we saw price decreases in all sectors as the market demand remained weak. Mills had high stocks and shuts occurred within several groups. Brown packaging grades remained stable or saw small decrease’s of -£5 per tonne. De-ink grades reduced at a similar rate. Middle grades used for tissue making and as well as pulp substitutes again suffered from a very weak market with prices falling on average across the board by over £10 per tonne in the tissue sector and higher in pulp subs.
December
Packaging
Orders to the far east were agreed with a drop of £5 per tonne on average. As confirmed last month, material is still moving, and orders are available, so the anticipated backlog due to the reported issue of the dry recovered paper pulp has not materialised.
Packaging mills in Europe – pricing has remained stable/small decrease in France and Spain. In Germany, pricing reduced by €5. However, across Europe many mills are taking down time over the Christmas period, so off take has been reduced.
Newsprint & Graphic Papers
As in November we have seen further, moderate decreases around £/€5 per tonne. Down time has also been prevalent in this sector with several mills closing for at least one week for “planned maintenance”.
Folding Box board
The market remains weak in this sector; we have seen price reductions of €10 per tonne depending on the grade.
Tissues
This sector remains very weak. High stocks at the mills and merchants across all of the UK and Europe. Price reductions are between £10 to £15 per tonne
Pulp Substitutes
As in November, across Europe, mills using these grades continue to purchase minimal tonnages. Several of the mills in question in this sector have taken shuts and have high stocks. Suppliers and merchants continue to report high stocks also. Best Whites grades orders continue to be non-existent in December; this is also now reflective in Mechanical pulp grades also.
Price reductions for Woodfree pulp subs of between £20 to £40 per tonne. Mechanical pulp subs around £10 to £20 per tonne
Pricing prediction
December, as reported last month is difficult, orders are low, high stocks in the mills and at Merchants. Many mills taking the Christmas period to complete required maintenance breaks. With poor logistics into Europe many merchants have taken orders ‘deep sea’ as containers are easier to secure and it’s easier to ensure movement of stocks as well as there is more stable pricing than in Europe.
Looking forward to next year, there is room for optimism whilst speaking with many of our customers in the packaging & tissue sectors, we are hearing of renewed contracts, new contracts and opportunities and capacities.
So whilst we reflect on some very tough trading conditions in 2025, we are looking forward to the New Year, and we would like to take this opportunity to wish you and your families a very Merry Christmas and best wishes for 2026.