May 2026 review
The transport sector remained volatile under pressure battling, not only fuel surcharges, but also (into Europe) the introduction of additional ferry energy costs and rising BAF fees.
This particularly affects haulage rates into France. These rates continue to rise and, due to the lack of import volumes, trailer availability remained low for UK-to-France exports. Hauliers who are able to offer trailers are doing so at a significant premium, with rates into France increasing by up to 57%, in terms of recovered fibre pricing this is equivalent of between £10–£16 per tonne.
With the fragile ceasefire in Iran still in effect throughout May, we saw the cost-per-barrel of oil fall, and as we reached the end of May the price fell below $100 providing some relief. In turn we have seen a reduction in Fuel surcharges from 10% in April to an average of 8.5% through May, however the oil market remains to be volatile.
June 2026
Packaging
1.04.00 / 1.05.00 (OCC)
June’s 1.05.00 price sees small increases of £3 – £5/t pushing prices to a high end of £110/t. This is mainly driven by the deep sea market but also from some smaller traders looking for tonnage, the gap between 1.05.00 & 1.04.00 is now closing with 1.04.00 prices reaching high points of £95/t.
Mixed Paper to the Far East and India remained stable with vessels stuck in the straight of Hormuz now slowly beginning to arrive at their end destinations. However into Europe we are seeing small increases of £3 – £5/t.
4.02.00 (Fruit box)
Orders for 4.02.00 across Europe remain strong in June, with further price increases from May around £5 – £7/t. Turkey are also buying strongly in this grade creating a strong demand overall in the UK market.
4.01.00 & 4.03.00 (NKLS & 98/2 OCC)
Stability remains for 4.01.00 in June, appetite from mills across Europe remains low.
Newsprint & Graphic papers
Market conditions for Newsprint and Graphic Paper grades remain balanced. Demand across both domestic and export outlets has shown little change from May, while supply remains readily available.
With no major shifts in consumption patterns or mill buying activity anticipated, pricing is expected to remain flat through June.
Folding Box Board 1.03.00 (grey board), 3.11.00 (HP Scan) Stable, 3.11.01 (Mixed Scan), 3.12.00 (LP Scan)
A month of stability in the box board market for June, with adequate availability across UK suppliers and steady order books across European and Far east mills we have seen no change from May to June.
Tissues 3.10.00 (Multigrade), 2.05.00(SOW), 2.06(Coloured letters)
The tissue market remains stable for both SOW and CHL grades, with the reopening of Prudhoe we may see demand for SOW increase through June. We have seen increases of £5–£7/t on Multigrades, driven primarily by demand from the Indian market. European mills are gradually aligning with these higher pricing levels, although demand from the region remains largely unchanged compared with May.
Pulp Substitutes
June sees another month of stability in Pulp Sub prices. While we have seen an increase of around $50/t in Pulp prices we are yet to see this increase in Pulp Subs. This is likely down to mills still carrying large inventories of stock.
Pricing Predications
Overall, the market remains stable across both newsprint and tissue grades. The packaging sector continues to see small increases for June. (1.02.00, 1.04.00, 1.05.00 & 4.02.00)
Demand in from Turkey, India and the Far East remain steady, however with the monsoon season now beginning, any significant market movement is unlikely in the near term.
Fuel prices have begun to ease slightly, which should help reduce pressure on the logistics sector however, we believe this may be short lived as legislation changes hit Europe in early July, once again increasing transport costs. Logistical challenges persist in France and continue to impact operations in the region. The economic crisis continues to cause widespread disruption for trailer availability. We are seeing an imbalance in imports into the UK vs exports into France, giving hauliers the chance to charge closer to premium load pricing as opposed to the usual back-load that the waste paper sector usually benefits from.
Mill order books are expected to remain reasonably strong throughout June as we move closer to the summer period, supporting continued demand across key grades.