For the Quarter Ending September 2025
North America
• The U.S. Pulp Price Index showed modest month-on-month firmness in Q3 2025 — the Producer Price Index for wood pulp was 225.46 in August 2025 (up 0.55% vs July, down 5.77% YoY).
• European and Latin American exports plus steady domestic mill output left global availability ample; U.S. importers and mills managed inventories conservatively, so spot tightness was episodic rather than structural.
• Tissue and packaging demand provided the bulk of offtake, while printing & writing paper demand remained weak. Overall manufacturing slowdowns kept consumption moderate, constraining any strong price recovery.
Why did the price of Pulp change in September 2025 in North America?
• Prices increased slightly in September as small restocking by paper and tissue mills met tariff-related sourcing uncertainty and selective buying from converters, which tightened near-term spot availability despite broader year-on-year weakness.
• Major end-uses in the U.S. include containerboard & packaging, tissue & hygiene (bath tissue, towel), printing & writing papers, specialty papers (filters, release liners), and emerging cellulose textile fibres—packaging and tissue remain the largest, stable demand pools.
• The Pulp Production Cost Trend in Q3 2025 saw mixed signals — pulpwood and energy costs were generally stable to slightly lower in some regions, limiting upward cost push; however, higher logistics and tariff compliance costs added cost uncertainty for import-dependent supply chains.
APAC
• In India, the Pulp Price Index rose by 6.41% quarter-over-quarter, reflecting supply tightness and freight.
• The average Pulp price for the quarter was approximately USD 981.68/MT, reflecting import-driven landed costs.
• Pulp Spot Price remained firm as port congestion limited arrivals, supporting elevated landed costs nationwide.
• Pulp Production Cost Trend showed rising wood and freight expenses, pressuring margins and import parity.
• Pulp Demand Outlook remained strong for packaging, tissue and hygiene supporting procurement despite higher costs.
• Pulp Price Forecast projects modest short-term gains as inventories thin and seasonal consumption supports restocking.
• Pulp Price Index showed volatility with rupee depreciation amplifying landed cost swings, limiting buying flexibility.
• Export demand recovery stayed muted while domestic restocking ahead of festivals tightened available pulp stocks.
Why did the price of Pulp change in September 2025 in APAC?
• Supply tightened due to delayed vessels and export restrictions from key suppliers, reducing inbound volumes.
• Elevated freight and rupee weakness increased landed costs, discouraging spot imports and accelerating procurement urgency.
• Strong packaging and hygiene demand, plus pre-festive restocking, absorbed available volumes, keeping import prices firm.
Europe
• Europe’s Pulp Price Index softened in Q3 2025 as many grades traded lower amid ample availability; softwood pulp selling prices at low levels across the region.
• European mills ran with steady output while global producer stocks increased during the quarter, contributing to a persistent oversupply; logistics were normal but did not absorb the excess available tonnage.
• The Pulp Production Cost Trend showed limited upward pressure in Q3 — pulpwood costs eased in some markets and energy/freight were mixed, so production-cost movements were modest relative to price declines.
Why did the price of Pulp change in September 2025 in Europe?
• Prices decreased in September because sluggish regional manufacturing and weak paper demand left producers with rising inventories; modest demand improvement from China was insufficient to offset European oversupply and muted domestic offtake.
• Key downstream applications include containerboard and packaging, tissue and hygiene products, graphic & printing papers, industrial wipes and specialty papers, and emerging uses in cellulose-based textiles — packaging and tissue were the largest stable demand pockets.
For the Quarter Ending June 2025
North America
• During Q2 2025, the U.S. wood pulp market faced downward pressure, driven by weak global demand and rising trade tensions. The U.S. Producer Price Index declined 3.83% YoY, despite a 1.08% MoM increase in June, reflecting overall market softness.
• China's 34% retaliatory tariffs disrupted nearly 600,000 tons of kraft liner exports, pushing U.S. producers to shift supply to Central and South America at lower prices—further pressuring the Pulp Spot Price and weakening the Pulp Price Forecast.
• The tissue paper sector remained stable, with chemical pulp demand holding firm due to steady hygiene-related consumption, supporting the overall Pulp Demand Outlook.
• The paper packaging market benefited from e-commerce growth and sustainability trends, driving demand for fiber-based solutions.
• Meanwhile, the Pulp Production Cost Trend remained elevated due to inflation in logistics and input costs, though partially offset by lower raw material prices.
Why did the Pulp price change in July in North America?
In July 2025, the Price Index showed a modest increase, driven by temporary inventory restocking and limited domestic demand recovery. However, the broader Pulp Spot Price remained under strain, as international demand failed to recover meaningfully.
APAC
• During Q2 2025, India’s imported wood pulp market experienced significant volatility, starting with a price slump in April and May, followed by a sharp rebound in June due to tightening global supply conditions.
• The Price Index for imported pulp remained weak in April and May due to oversupply, but saw a 15.5% increase in June 2025, driven by logistics disruptions, reduced global pulp availability, and firm downstream demand.
Why did the Pulp price change in July in Asia?
In July 2025, the Price Index for imported pulp decreased slightly, as shipping bottlenecks began to ease and mills reduced buying after aggressive inventory building in June. The Pulp Spot Price stabilized, though remained elevated compared to earlier in the quarter.
Europe
• The average European NBSK Price Index in Q2 2025 was 1% higher year-over-year compared to Q2 2024, driven by limited fresh arrivals due to maintenance shutdowns at major mills.
• On a quarter-over-quarter basis, the Price Index eased modestly versus Q1 2025, as higher inventory levels and weaker European buying interest softened overall pricing momentum.
• Supply was constrained across Europe in Q2 2025 due to planned maintenance downtime, especially among Nordic producers, tightening availability of softwood grades.
• Despite reduced output, inventory build-up from earlier imports created a buffer that limited upward price movement and maintained a stable Pulp Production Cost Trend.
Market pulp demand remained weak throughout Q2 due to subdued downstream consumption in paper and board sectors, with end-users postponing restocking amid tariff uncertainties.
Why did the Pulp price change in July in Europe?
In July 2025, the Price Index declined, reflecting sluggish restocking activity, persistent trade policy uncertainty, and elevated inventory levels. Market participants delayed purchases due to uncertain tariff impacts and a weak economic environment.
The Pulp Demand Outlook for Europe remains cautious, as sluggish economic growth, regulatory headwinds, and lackluster printing and writing paper demand continue to limit recovery.
The Pulp Price Forecast for Europe remains flat to slightly bearish, especially for hardwood grades, unless demand improves or supply tightens further in H2 2025.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the U.S. pulp and paper industries faced a challenging start, navigated a complex trend displaying fluctuated demand, evolved trade dynamics, and ongoing consolidation. Oversupply and low demand made the producer raise the prices, but profit margin remained under pressure due to inflation, and subdued demand.
As we look forward to the second quarter of 2025, US imports of hardwood and softwood pulp are under threat from potential tariffs they made on Canada and Mexico. Overstock inventories will play another significant role in forming and sharping market sentiment, as the overstock inventories usually preceding to price cuts.
With breakdown of global market pulp demand and low market pulp share has made the United States, export market face challenges by cheap exporting competitors which has limited the competitiveness of U.S. in international cardboard 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
The Indian pulp market faced notable challenges in the first quarter of 2025, driven by surging raw material costs, currency depreciation, and global supply constraints. January witnessed a sharp increase in imported wood pulp prices, as supply disruptions and heightened demand impacted the global market. The depreciation of the Indian Rupee further inflated costs for domestic manufacturers, who rely heavily on imports from the United States, China, and Canada. In February, industry leaders like BGPPL and Bindals Papers implemented price hikes to mitigate rising expenses, but profit margins remained under pressure. Additionally, the Indian paper industry's dependence on global pulp supplies exposed it to frequent price fluctuations caused by shifting trade dynamics. On the demand side, pulp consumption remained strong, with domestic manufacturers relying on local wood sources. However, these plantations struggled to meet demand due to competition from other sectors like Plywood, which further drove up raw material costs. By March, pulp prices began to decline slightly as global pressures eased, and manufacturers adjusted their strategies to align with the market conditions. Despite this marginal relief, the market continued to reflect cautious sentiment, shaped by ongoing economic uncertainties and persistent cost challenges.
Europe
In the first quarter of 2025, the German pulp market experienced a steady decline. The decline was marked by a drop in consumer confidence this led to a noticeable slowdown in industrial activity. Demand for pulp production was reduced by major downstream industries, including packaging, printing, and tissue manufacturing, as sectors showed limited trust in market stability. This contraction in demand led to the accumulation of surplus inventories, as suppliers continued production despite sluggish consumption.
By the first mid quarter, pulp industries from Germany strained exports encountered with minor logistical and trade challenges further the industry. As the quarter progressed. By the end of the first quarter export prices of pulp began to decline. Multiple factors influenced the downward trend in prices, including steady pulp demand in international markets and a reduction in global crude oil prices, which lowered transportation and production costs.
Despite the initial downturn, these developments suggested a potential shift in momentum for the industry. However, the long-term outlook remains uncertain and is heavily dependent on how quickly domestic demand recovers and how global trade conditions evolve in the coming months.
