Market Report
Worries also in the folding box board sector
NL-Tilburg, 28 June 2026
As far as the low grades of recovered paper are concerned, it was once again India that stood out as a positive story last week. In South-East Asia, the mood remains cautious. This is partly because purchases there can, particularly in the UK, benefit from the higher value of the PERN.
Although the paper and board industry in India is also going through difficult times due to high energy prices and fierce competition in the domestic market from suppliers of new paper and board from other continents – particularly China – there is nevertheless a level of demand that apparently makes it possible to push up ex-works prices for occ (kls) by a few dollars per tonne. This is, however, mainly to regions where container rates to certain ports remain at least the same or even fall slightly. To some ports, shipping lines are raising their rates, partly through ‘peak season surcharges’, whatever that may entail. In any case, these surcharges of up to $200 per container do stand in the way of shipping to those ports. It simply goes to show that export demand does exist, but it comes with specific conditions whereby cherry-picking of mills, destinations and available shipping rates is needed to keep shipments moving.
This is one of the reasons why local European buyers say they have no problem purchasing cardboard grades based on June prices, meaning that prices for low grades are unlikely to change much in July.
The situation appears to be somewhat different for the middle and high grades. The (as yet) lower generation and restocking by the paper industry over the summer now appears to be putting upward pressure on prices after all, higher prices for July were quoted here already as early as last week compared to June levels. Whether this will intensify in the coming days, or whether the desired volumes have already been secured, remains to be seen.
Just how challenging the market is for the paper and board industry was highlighted once again this week by a number of worrying reports. For instance, folding carton manufacturers FOLBB in Baiersbronn (D) and Eerbeek (NL) filed for bankruptcy this week. With 210 and 220 employees respectively, this poses a serious problem for the towns,
which have populations of 14,000 and 10,000 respectively. The bankruptcy in Eerbeek of the former Verenigde Papierfabrieken Eerbeek (VPE) – which was taken over by KNP, then by MM, and subsequently sold to Oaktree Capital five years ago – marks the complete end of paper and board production in Eerbeek. Unless a relaunch can be achieved, but realistically speaking, the chances of that are slim.
Furthermore, the Italian company Reno de Medici – which has already closed its mills in Barcelona (E) and Blendecques (F) in recent years – reported this week that it is in talks with investors to find a solution via refinancing for the missed interest payment due on 15 June. This is not good news either.
What, in fact, remains of the promised ‘growth market’ for consumer packaging?
Price indication
Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 60 and € 80 per tonne. These prices are depending on quality, available volume, region and loaded weight.
Look here at the Price chart >>
The price chart gives an indication of the price of mixed paper, separately collected, in the Netherlands free delivered mill over the last 10 years.
Scrolling over the top of the columns gives the exact price indication in Euro's per ton.