Looking back over July 2026
July saw modest price increases of around £5/t across packaging grades and mixed papers. We also recorded price increases in the tissue sector and the folding boxboard market, while the newsprint sector remained stable for another consecutive month.
Oil prices began to rise again towards the end of July, resulting in higher fuel surcharges for both domestic and European haulage. Container freight rates to the Far East also increased, adding further pressure to logistics costs.
Palm Paper announced that it will cease newsprint production at the end of 2026 and transition to manufacturing corrugated case material, with production scheduled to begin in the first quarter of 2027.
August 2026
Packaging
1.04.00 / 1.05.00 (OCC)
1.04.00 & 1.05.00 look to have remained stable for August. Although we are seeing increases in fuel and shipping costs and a small reduction in the PERN. Mill prices have seen increases likely down to low collection volumes during the summer period. Overall a stable market despite underlying cost pressures.
4.02.00 (Fruit box)
Demand for 4.02.00 remains strong across Europe as we move into August, with mills continuing to operate with full order books and ramp up production to meet ongoing demand. The significant price increases seen at the end of July have carried into August.
4.01.00 & 4.03.00 (NKLS & 98/2 OCC)
Demand across Europe remains low for 4.01.00 and 4.03.00. 4.01.00 has remained stable into August with prices reported between £115 & £120/t mainly into India and Turkey.
Newsprint & Graphic Papers
Another month of stability has been seen across the newsprint and graphic paper markets in both the UK and European export markets. As we move into August, European mills will continue with planned maintenance downtime during the summer holiday period, helping to keep supply balanced and market conditions stable. While Palm’s announcement will not make an immediate effect on the market, UK suppliers will be looking to establish export outlets become more dependent on these routes.
Folding Box Board 1.03.00 (grey board), 3.11.00 (HP Scan), 3.11.01 (Mixed Scan), 3.12.00 (LP Scan)
August has seen stable pricing for LP Scan and BBC, with prices remaining broadly unchanged. This stability reflects a balanced market, with steady demand from both deep-sea export and European markets.
In early July, cartonboard producer Folding Boxboard Eerbeek (FOLBB) entered insolvency, resulting in reduced demand for UP Scan. Consequently, August has seen UP Scan prices decrease by between €25 and €30/t as the additional tonnage entered the market, increasing supply and placing downward pressure on prices.
News at the end of July that FOLBB will resume operations under new ownership has provided some optimism that the market may recover. However, in the short term, we expect prices to remain under pressure, with no significant changes
Tissues 3.10.00 (Multigrade), 2.05.00 (SOW), 2.06 (Coloured letters)
Demand for SOW and CHL continue into August with price increases between £5 & £8/t. The summer period continues to support the market as generation of these grades typically declines around this time reducing the volume of available material. Merchants continue to report strong demand from UK consumers.
3.10.00 has seen increases around £5/t in August, again linked to the lack of generation throughout the summer period.
Pulp Substitutes
Prices remain stable for another month in August. While mills have implemented slight price increases, these have largely been to offset the recent rise in fuel surcharges rather than reflecting any underlying market tightening. High inventory levels continue to limit the need for further price increases, helping to keep the market stable for the time being.
Pricing Predications
We expect to see continued small increase across the tissue sector linked with low seasonal generation, with tissue mills now using more folding box board in their production we also expect to see small increases in this grade.
Packaging we anticipate levels of stability, with rising cost for deep sea export along with increased road freight any mill increase will likely cover increasing costs.
Pricing in the newsprint sector remains stable, and we expect this trend to continue into September. However, Palm’s recent announcement regarding changes to its production has introduced some uncertainty into the market, and we will continue to monitor any potential impact on supply and pricing.