September review
As we roll into the last quarter of this turbulent year, September brought its challenges. Low demand for paper products meant mills cutting back their purchasing, pricing across the spectrum fell across all markets worldwide although the European and Indian markets seemed more reactive.
Far east markets for recovered paper in September weakened as demand remains poor, but pricing remained relatively stable due to currency and shipping cost fluctuations.
Pricing and demand for finished goods in all sectors in the UK remains very weak. Reported reductions in sales values continue particularly in the packaging and fine paper sectors.
The weak fine paper market reflected in continued falling pulp sub pricing and this is mirrored by the very weak tissue sector across the whole of Europe.
Box board demand remains weak, as this sector also continues with struggles to sell finished goods.
October
Packaging
Packaging mills in Europe – pricing varied across Europe with either small price reductions to stable. Far east prices remained stable or a small decrease OCC 1.04.00 & 1.05.00 and mixed papers (1.02.00). Movement zero to – £5 per tonne.
4.01.00, 4.02.00 & 4.03.00 (NKLS, Fruitbox and Kraft) grades pricing fell around -£5 to -€10 per tonne. Volumes purchased for the mills reduced in this sector across Europe.
Newsprint & Graphic Papers
There is poor demand and reduced pricing in the UK, but this is not reflective across Europe. Pricing for the finished goods remained stable. It is anticipated that the pricing in this sector will remain stable for November.
Pricing – down £5 per tonne in the UK, stable in Europe
Folding Box board
Low demand in this sector, machine shuts and high stocks has seen price reductions in this sector of between €10 to €20 per tonne depending on the grade.
The tissue sector who also uses this grade has also reduced demand and pricing has fallen by similar values.
Tissues
As in September, pricing in this sector reduced by at least £10 per tonne. Essity Prudhoe remains closed, and it is not anticipated to restart now until at least December 2025. Europe also has high stock, and pricing has reduced in line with the UK.
Price reductions in this sector of £10 to £15 per tonne
Pulp Substitutes
All mills in Europe using these grades are purchasing minimal tonnages. Suppliers and merchants are reporting high stocks. Pricing will decrease but there will also be a lack of movement of volume, particularly in the Best Whites grades. Mechanical grades currently are still moving but price reductions have been confirmed.
Price reductions for Woodfree pulp subs of between £20 to £40 per tonne. Mechanical pulp subs around £5 to £10 per tonne
Pricing prediction
Paper mills worldwide continue to report poor order books with reduced finished goods pricing in all sectors.
We do not anticipate any change in this situation for the remainder of 2025.