On the domestic side, mixed paper held steady on trading throughout September, while OCC 1.04 and OCC 1.05 both moved upward.
Sorted Office Waste (SOW) and multigrade saw the strongest domestic gains, climbing significantly on the back of increased demand from UK mills.
White letter edged up at the bottom end of its range, and all other domestic grades remained flat.
Demand for OCC was particularly strong across the board this month. The Essity Prudhoe mill continued its buying of SOW domestically, and September – traditionally the toughest month to buy for the UK tissue market – saw added pressure from Asian buyers also chasing SOW and multigrade tonnage.
Export pricing was more mixed but generally firm.
Mixed paper rose by £2 at both ends of the range, and OCC 1.04 gained £3 at both top and bottom. OCC 1.05 increased by £2, taking the top of its range to £116 per tonne.
Multigrade for export rose by £10, but only at the bottom end, while SOW gained £5 at the top end only. Best White 2 was the outlier, falling £10 at the top end.
All other export grades were flat.
Underlying demand for export tonnage, especially for OCC, has been strong, driven in large part by supply disruption out of North America.
Reduced material availability from the US, where domestic mills are absorbing more volume and Trump’s tariffs continue, has pushed Indian buyers who would normally source from the US to look elsewhere, including the UK.
A parallel squeeze on Canadian material, linked to broader US-Canada trade and political tension, has reinforced the same effect.
India, Malaysia and Indonesia all showed strong demand for OCC through September. Some of the export strength in OCC looks to be overseas mills building stock ahead of anticipated Q4 fuel cost increases.
Some merchants noted that freight costs are beginning to bite with MSC and Maersk having reportedly already raised container charges, and other lines predicted to follow in October, though this remains speculative at this stage.
Port congestion, particularly in India and Indonesia, is compounding the pressure – with some merchants reporting difficulty securing empty containers.
Looking ahead
Prices are typically elevated in September, and it’s possible this month marks the peak of prices increases this year, though with tariff policy, shipping costs and regional demand shifts all in play, it’s difficult to call with confidence.
Watch for further container rate rises in October if other shipping lines follow MSC and Maersk, and for any easing (or worsening) of port congestion in South and Southeast Asia.
Changes to PERN regulations are expected to start affecting the market from mid-October, with some shipments now unlikely to reach their destination before year-end – a factor that could have a big impact on hitting 2026 targets.
View our more detailed paper price index here.
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