Market Report

Skirmishes in Middle East put pressure on prices low grades

NL-Tilburg, 26 July 2026

Following a lull during which fuel prices had fallen back to somewhat acceptable levels, those same fuel prices rose again to record highs last week as hostilities in the Middle East have flared up once more. This has had a direct impact on the prices of certain grades of recovered paper. In the export market, uncertainty has arisen regarding shipping options for the coming month(s) in terms of container availability, freight rates and any potential surcharges. It is clear that, with the decline in demand for American cardboard grades, paper and board mills in South-East Asia are, in any case, unwilling to pay any potential additional transport costs. Closer to home, in India, mill buyers’ stance is less firm, but even so, there is still too great a risk in finalising orders because it is unclear what the selling price will need to be in order to at least secure a price higher than local European prices.

As for those local European prices, the situation is not much better for the low grades. Ahead of price negotiations for August, there appears to be little enthusiasm on the part of mill buyers to adjust prices. Add to this the significant local rise in transport costs due to higher fuel prices and toll charges, and it is clear that ex works prices for low grades will also be lower locally in Europe in August. This is also because, despite the lower generation, supply to the paper and board industry seems to remain sufficient.

The situation is different for middle and high grades, where the supply has slumped so dramatically that there is a sense of scarcity. A recognisable consequence of this is that producers of recycled graphic paper are placing larger orders, whilst suppliers, due to the limited supply, are cautious about confirming volumes because it is impossible to predict what will come in and when. There are no stocks of these grades to begin with. It is therefore inevitable that buyers will have to adjust their prices upward. By how much? That remains to be seen.
As closures of graphic paper production capacity are lagging behind the market contraction, these producers are plagued by constant pressure on their selling prices due to the continuing oversupply; on the other hand, there is upward pressure on recovered paper prices as the decline in supply is slowing almost daily. In such a market, the closure of Palm UK is more than welcome, as it means less competition both in the supply of finished (new) paper and when purchasing on the raw materials market.

By contrast, the testliner and fluting market will be watching with some concern the start-up of the new capacity of Eren and Palm in England. The UK could well go from being an importer of recycled corrugated board to an exporter. A worry for continental producers, who not only have to compete with products manufactured efficiently using large

large machines also with an imbalance in transport. Whilst exports to the UK are expensive in terms of transport, exports from the UK to the continent are considerably cheaper due to the imbalance in transport costs, with differences amounting to as much as €40 per tonne. And whilst these new production facilities will indeed have to compete on the raw materials market with export destinations, they can also count on support via a PRN, which currently stands at £10 per tonne. Not to mention the differences in energy prices. That’s going to be quite a battle, so much is clear.

Finally, some positive news. FBB Eerbeek, the producer of folding boxboard in Eerbeek (NL) which recently went bankrupt, is set to make a fresh start – apparently to the surprise of the liquidator as well. This would see 180 of the 200 jobs retained, and the 365-year tradition of paper and board production at this site will be revived. It will make no difference for the recovered paper market. Except from some stock lots, no recovered paper was used anymore as raw material in Eerbeek since many years.

Price indication

Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 60 and € 80 per tonne. These prices are depending on quality, available volume, region and loaded weight.

Look here at the Price chart >> 
  
The price chart gives an indication of the price  of mixed paper, separately collected, in the Netherlands free delivered mill over the last 10 years.
Scrolling over the top of the columns gives the exact price indication in Euro's per ton.