For the Quarter Ending June 2025
North America
• The Kraft Paper Price Index in North America showed a mixed trend throughout Q2 2025, remaining steady during April and May.
• Kraft Paper Production stayed robust, with mill operating rates around 86.5%, which led to rising inventories as demand failed to keep pace with supply.
• In June, the Kraft Paper Price Index edged higher driven by an uptick in e-commerce demand, increased input costs including volatile energy expenses and pulp prices, and new import tariffs on key inputs tightening overall supply.
• Capacity reductions in North America removed approximately 5–6% of total kraft output from the market, contributing to supply constraints.
Why did the price of Kraft Paper chang in July 2025 in North America?
• The Kraft Paper Spot Price increased in July 2025, primarily due to rising production costs and tighter supply.
• The Kraft Paper Price Forecast anticipates further upward pressure on prices in the near term, influenced by ongoing input cost volatility and supply-demand imbalances.
• The Kraft Paper Production Cost Trend continues to rise, driven by higher energy and raw material prices.
• Overall, the Kraft Paper Demand Outlook remains cautious but may improve if tariff uncertainties ease and supply stabilizes.
APAC
• In April 2025, the Kraft Paper Price Index in Asia was stable due to balanced supply and demand amid a seasonal slowdown in packaging; the Kraft Paper Spot Price reflected steady market sentiment.
• Mills maintained regular output with no raw material disruptions; inventories were moderate, supported by domestic recycling.
• Demand was steady but subdued, with short-term purchases and baseline e-commerce consumption.
• In May 2025, the Price Index rose ~5%, driven by limited wastepaper availability from hot weather and reduced imports, causing supply shortages and operational challenges.
• Mills operated 18–20 days monthly with frequent shutdowns; the Kraft Paper Production Cost Trend showed upward pressure due to scarce, costlier local wastepaper.
• Demand remained weak, with cautious buying amid tight cash flows; however, a trader survey expressed optimism for improved Kraft paper demand.
• In June 2025, the Price Index fell 1.4% due to weak demand, payment crises, and supply disruptions.
• Wastepaper deliveries tightened further as vendors withheld supplies over unpaid dues; rising input costs and ended shutdowns increased production pressures.
• Demand stayed subdued with minimal activity and payment delays worsening the situation; seasonal box production provided limited support, but overall Kraft Paper Demand Outlook remained weak.
Why did the price of Kraft Paper chang in July 2025 in Asia?
• The Kraft Paper Spot Price in July 2025 influenced by continued raw material constraints and fragile demand, with potential for modest price stabilization.
• The Kraft Paper Price Forecast suggests cautious optimism but highlights risk from cost volatility and payment issues.
• The Kraft Paper Production Cost Trend is anticipated to remain upward due to ongoing input cost inflation.
• Overall, the Kraft Paper Demand Outlook remains cautious with possible gradual improvement if economic conditions and raw material supply stabilize.
Europe
• The European Kraft Paper Price Index trended upward from April to June 2025, driven by rising production costs, tariff impacts, and improving demand from packaging and e-commerce.
• Mills raised prices due to escalating costs in pulp, energy, and logistics, with most hikes partially accepted after negotiations.
• Supply was constrained by production delays and scheduled maintenance.
• New US tariffs and global trade tensions pressured exports, contributing to regional price corrections.
• While bleached eucalyptus pulp prices dipped slightly, gains were offset by higher power and freight costs.
• Demand from FMCG, packaging, and online retail sectors sustained positive market momentum.
Why did the price of Kraft paper change in July 2025 in Europe?
• In July 2025, the Kraft Paper Price Index in Europe rose further, extending the previous quarter’s upward trend. The increase was driven by sustained industrial demand and continued supply-side cost pressures.
• While pulp prices began to stabilize, other raw material and logistics costs remained high due to global supply chain issues.
• Capacity constraints and mill backlogs limited availability, especially in sack and specialty grades, enabling producers to maintain and pass on price hikes.
For the Quarter Ending March 2025
North America
The U.S. Kraft Paper market featured a modest downtick, despite the stable feedstock prices with minor fluctuations in the first quarter of 2025. The new elected U.S. administration brought delicate changes in tariff resulting imbalance between cost management and shifting market dynamics. Low demand from consumer-made producers to increase the Kraft Paper prices, this strategy was made to meet the profit margin.
Even after low no significant disruptions were reported, production levels have remained. For the first quarter downstream industries have lowered demand due to the off season with no major events. On the other hand, digital consumers have supported the market with the influence of e-commerce and helped supply to meet demand.
The United States, export market faced challenges by competitive cheaper exporters, which has limited the competitiveness of U.S. in international kraft paper markets. As a result, export opportunities remain restricted, forcing many producers to focus on serving the domestic market, where supply remains sufficient to meet current demand.
APAC
In the first quarter of 2025, the Indian Kraft Paper market exhibited mixed trends, influenced by subdued demand, fluctuating raw material costs, and broader economic challenges. In January, prices showed relative stability with a minor month-on-month fluctuation of 0.5%. However, persistent issues in securing raw materials, such as wood and pulp, continued to pressure production and pricing dynamics. Additionally, export volumes declined as prices fell below sustainable thresholds, further straining market conditions.
Manufacturing activities remained constrained, with several mills in Western Uttar Pradesh and Northern India implementing temporary production halts to address excess supply and stabilize prices. Despite these measures, demand weakness persisted, particularly among key downstream sectors like box manufacturing and packaging, which contributed to market oversupply and price stagnation.
In February, Kraft Paper prices stabilized but remained under pressure, fluctuating by 0.2% due to the Indian Rupee’s depreciation and rising raw material costs. Leading mills, including BGPPL and Bindals Papers, implemented price hikes to mitigate the impact of surging wood and pulp expenses. By March, slight price increases were noted as local demand and manufacturers adjusted production strategies to align with market conditions. Overall, the market remained cautious amid economic and supply chain uncertainties.
Europe
German one of the biggest Kraft Paper markets of Europe, overgo with prices for the first quarter of 2025. This steady and mild increment signals a positive shift after stagnation received in the previous quarter. This rise was primarily fueled by strong demand from the packaging sector and various downstream industries. Intensified consumer activities particularly from e-commerce, wrapping paper and protective inner packaging played a vital role in driving demand.
During the middle of the quarter, the export market encountered minor disruptions, primarily due to production challenges faced by domestic manufacturers. These issues slightly hindered outbound shipments but did not significantly affect the overall market performance.
In response to the availability of tight raw material, producers raised Kraft Paper prices to balance input costs. Despite the upward price trend, the market absorbed the increase relatively well. Demand remained resilient, and no major negative reaction from buyers was observed. This stability suggested that end users were prepared for moderate cost adjustments, likely influenced by ongoing supply chain constraints across Europe.
Overall, the first quarter reflected a cautiously optimistic outlook for the German kraft paper industry, with steady demand, manageable supply issues, and price movements that indicated a gradual recovery in market confidence.
FAQ’s
1. What is the current price of Kraft Paper?
As of July 2025, the Kraft Paper Spot Price varies by grade and region. In Europe, prices have continued to rise due to strong demand and elevated input costs. For the most accurate and up-to-date pricing, consult industry reports or local suppliers.
2. Who are the top Kraft Paper producers in the United States?
Leading Kraft Paper producers in the U.S. include International Paper, WestRock, Georgia-Pacific, and Packaging Corporation of America (PCA). These companies operate large-scale facilities and serve both domestic and international markets.
3. What is the outlook for Kraft Paper demand in the coming months?
The Kraft Paper Demand Outlook for the second half of 2025 is cautiously optimistic. While demand remains soft in some sectors, growth in e-commerce, FMCG packaging, and retail is expected to support moderate recovery.
4. What factors are influencing the Kraft Paper Price Forecast?
Key factors shaping the Kraft Paper Price Forecast include raw material availability (especially wastepaper and pulp), energy and logistics costs, global trade policies, and demand trends in packaging and industrial sectors.
