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.
