For the Quarter Ending September 2025
North America
• The U.S. Kraft-paper Price Index remained firm through Q3 2025, with headline containerboard and kraft packaging prices holding steady into August–September after mid-year tightness. Market trackers and price charts show US kraft/packaging grades trading at elevated levels versus early-2025 lows.
• Demand was moderately strong — stable food packaging requirements, steady e-commerce volumes, and retail stocking helped sustain offtake. Growth in sustainable and recycled packaging formats continued to underpin structural demand for kraft grades.
Why did the price of Kraft Paper change in September 2025 in North America?
• Prices increased modestly / stayed firm in September because resilient demand from food, e-commerce and retail packaging met tighter regional supply caused by mill conversions/closures and logistical bottlenecks; producers also passed through higher operating costs. These factors combined to support the Price Index in late Q3.
• The near-term Kraft paper Demand Outlook is positive-to-stable entering Q4 2025 given holiday season stocking, ongoing e-commerce demand and investments in recycled packaging; downside risks include consumer spending softness and further large-scale order cancellations.
APAC
• In India, the Kraft Paper Price Index fell by 1.223% quarter-over-quarter, amid weak demand, delayed payments.
• The average Kraft Paper price for the quarter was approximately USD 419.16/MT, per regional assessments.
• Kraft Paper Spot Price remained pressured as buyers delayed purchases amid high input logistics costs.
• Kraft Paper Price Forecast suggests festival-driven recovery tempered by constrained export demand and inventory adjustments.
• Kraft Paper Production Cost Trend reflects upward pressure from wood pulp, transportation, rupee weakness, import tariffs.
• Kraft Paper Demand Outlook remains mixed with festival stocking supporting volumes while industrial demand subdued.
• Kraft Paper Price Index volatility eased after August hike as mills managed inventories and normalized dispatches.
• Export orders softened while domestic inventories increased slightly, pressuring margins despite steady mill production levels.
Why did the price of Kraft Paper change in September 2025 in APAC?
• Supply tightened as wastepaper deliveries fell, and vendors withheld material due to unpaid dues recently.
• Demand weakened as downstream buyers delayed payments and purchases, reducing order flow across packaging converters.
• Rising input costs, rupee depreciation and import tariffs elevated production costs, constraining mill margin recovery.
Europe
• Europe’s Kraft Paper Price Index was largely stable to mildly positive in Q3 2025 as slack industrial demand was balanced by steady packaging and e-commerce volumes.
• Ample supply persisted due to uninterrupted mill operations across many European hubs; inventories remained sufficient and capped upside for the Price Index despite pockets of logistical tightness that supported spot premiums.
Why did the price of Kraft Paper change in September 2025 in Europe?
• Weaker industrial and sack-grade demand (order books softened), which eased transactional pricing and limited Price Index gains.
• Persistent demand from e-commerce and FMCG packaging plus higher energy/transport and some log cost pressure, which prevented deeper declines and kept the Price Index broadly stable.
• Port/logistics bottlenecks in specific hubs created short, localized spot support.
• Kraft paper Price Forecast for Q4 2025: expect stable to mildly positive Price Index movement absent a major energy or logistics shock. Any upside will be selective (specialty grades, brief spot shortages); downside risk stems from renewed industrial weakness.
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.
