Mexican containerboard, European newsprint and China’s Covid-19 lockdowns: Top paper market headlines

Containerboard prices rise in Mexico, pulp demand in China is impacted by lockdowns and European newsprint prices increase again

Mexico containerboard prices rise in April on high production costs

Packaging

Prices for recycled containerboard increased in Mexico in April, with producers succeeding in implementing part of a previously announced price hike for linerboard and medium.

  • Sources reported that prices moved up by 700 pesos per tonne
  • Negotiations started after prices increased in the US and rising production costs in Mexico
  • Corrugators are demanding more paper from local producers in order to substitute for imports
  • Imported US kraft linerboard increased by $30 per tonne in April

Read more (subscribers only)

Covid-19 lockdowns in China dent fundamental pulp demand

Pulp

China’s strict anti-Covid-19 lockdowns, most notably in Shanghai, have thrown a wrench into paper and board (P&B) mill logistics across the country, depressing fundamental demand for market pulp.

  • Producers state they have product ready but no truck drivers to make deliveries
  • Lockdown measures have also hindered the pickup of pulp from ports for delivery to mills
  • A sign of a slowdown is the decline of resale South American bleached hardwood kraft (BHK) pulp in the domestic market.

Read more (subscribers only)

European newsprint prices rise again due to high gas prices and low paper availability

Paper

Despite the fact that prices rose to all-time highs in January, newsprint demand continued to be higher than supply, constraining buyers’ negotiating power, while extremely high gas prices forced paper mills to implement further price increases or energy surcharges from mid-March or the beginning of April.

  • April, newsprint prices inched up further as paper producers imposed additional energy surcharges
  • Norske Skog and UPM impose additional energy surcharges
  • Many market sources believe that newsprint demand will start to decline substantially in 2022 because of the incredibly high sales prices
  • The printing industry, which is struggling to absorb paper price hikes as well as other rising input costs

Read more (subscribers only)

Case Study

Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.

What to read next
Read more about the new Fastmarkets-settled Southern Yellow Pine contract to launch at CME Group
To navigate what can be a volatile market across paper packaging and wood products, gaining market-reflective and unbiased pricing information is crucial to safeguarding competition and fairness. Buyers need a neutral benchmark to enable the fairest and most accurate price for any given time. Some suppliers utilise their own cost-plus models, internal indices or pricing formulae. […]
The perpetually moving target of tariffs on Canadian lumber shipments to the US frustrated traders and had broad impacts on sales in many species. Despite middling demand, the threat of tariffs combined with relatively tight supplies left many prices higher for the week. The delay in announcement of preliminary AD rates by the Commerce Department […]
This consultation, which is open until March 27, 2025 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency. You can […]
We expect prices for paper products in Latin America to increase in 2025, tracking higher costs and more robust demand than in 2024. The demand recovery in 2024 created opportunities to consume any remaining unsold inventories from the 2022-23 period, and new orders were placed throughout the year as demand increased. From a cost perspective, […]
US linerboard prices narrowly increased by $30-40 per short ton in February, according to Fastmarkets’ monthly survey. Levels were reported up by $40 per ton for brown virgin and recycled linerboard, and up by $30 per ton for white top linerboard. Major producers sought increases of $60 per ton and $70 per ton for linerboard, […]