The paper market recorded generally softer pricing over the past month, with activity subdued amid low trading volumes.
The paper industry traditionally sees weaker pricing during August, but several market participants have noted that this year’s declines were not in keeping with usual trends. A key driver has been extended downtime at a number of continental European mills as a result of low demand.
At the same time, European producers continue to grapple with elevated energy, production, and labour costs – factors that typically exert upward pressure on prices, but which have been outweighed by lacklustre demand.
In contrast, the East Asian market has remained comparatively stable, though momentum remains muted. The relative stability in this region has helped lend limited support to international pricing.
Trade policy developments also remain influential. US tariffs have resulted in increased flows of lower-cost Canadian reels – predominantly OCC and newsprint – into the European market, adding to downward pressure.
The Indian market has likewise been negatively affected by its trade ties with the US, and sentiment there remains weak.
However, several industry contacts suggested that the impact of tariffs has so far been less severe than initially anticipated, though this could shift should counter-tariffs be introduced, with one contact stating that the US president “doesn’t generate stability”.
In the UK, domestic prices continued on a downward trajectory, impacted by ongoing plant closures and scheduled downtime, including the closure of the Kimberly-Clark facility in Flint at the start of the year. Reports also indicate that Sorted Office Waste (SOW) remains particularly difficult to place.
Against this backdrop, letsrecycle.com has recorded largely declines across most paper grades.
While a near-term rebound in September appears unlikely, a number of market participants said they expect the situation to improve later in the year, with the potential for more meaningful recovery in 2026.
View our more details paper price index here.
Subscribe for free