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.
FAQs:
1. Who are the top pulp producers in the United States?
Leading U.S. pulp producers include:
• International Paper – One of the world’s largest producers of market pulp, containerboard, and paper products.
• Domtar – Specializes in hardwood and softwood pulp for hygiene, packaging, and specialty applications.
• WestRock – A major integrated producer of pulp-based packaging solutions.
• Georgia-Pacific – Supplies wood pulp used in tissue, packaging, and absorbent products.
• Mercer International – Operates large-scale pulp mills with a presence in both the U.S. and Europe.
2. What is the Pulp Price Forecast for H2 2025?
The Pulp Price Forecast for the second half of 2025 suggests:
• Europe: Likely to remain flat or decline slightly due to high inventories and sluggish demand in paperboard sectors.
• India: Expected to stabilize after the Q2 surge, contingent on trade flows and port efficiency.
• U.S.: Forecast to stay under pressure from reduced export volumes and strong Canadian competition, though tissue and packaging sectors may offer modest support.
3. What is the Pulp Production Cost Trend in 2025?
The Pulp Production Cost Trend remains elevated globally due to:
• High energy and fuel prices in Europe and North America.
• Port congestion and container shortages, especially impacting Asia–Europe and Transpacific routes.
• Raw material inflation, particularly for wood chips and chemicals used in bleaching.
• Increased labor and maintenance costs due to mill downtime and skilled labor shortages.
4. What sectors are driving the Pulp Demand Outlook in 2025?
The Pulp Demand Outlook varies by region but is supported by:
• Tissue and hygiene products – showing steady demand across global markets.
• E-commerce and packaging – especially fiber-based packaging as sustainable alternatives to plastic gain traction.
• Specialty papers – including medical, labeling, and filtration grades.
• However, printing and writing paper remains weak due to digital substitution and inventory overhang.
