Brazilian tissue jumbo roll market remains stable as oversupply delays price increase attempts

Key takeaways:

• Brazilian tissue jumbo roll prices were unchanged in July for a third consecutive month despite higher costs.
• Non-integrated producers postponed price increase attempts because persistent oversupply continued to pressure market pricing.
• Rising pulp, freight and other input costs increased pressure on suppliers, but negotiations remained challenging.
• Export opportunities weakened as Asian shipments expanded and redirected domestic volumes intensified Brazilian market oversupply.
• Recycled jumbo roll prices were largely stable, while converted tissue product increases gained limited traction.

Explore the key supply, demand and trade factors shaping pricing conditions across Brazil’s tissue jumbo roll market.

The Brazilian tissue jumbo roll market remained heavily oversupplied throughout June and early July, prompting non-integrated sellers to postpone attempts to pass higher costs on to independent converters despite rising pulp, logistics and plastic input costs, market participants told Fastmarkets.

Fastmarkets’ assessment for tissue, jumbo rolls 100% virgin fiber, 13-14.5 g/square meter, fob Brazil, which is the benchmark for the Brazilian market, was 6,400-6,950 Reais ($1,237-1,343) per tonne in July, unchanged for the third consecutive month. On an annual basis, prices were 6% lower.

Several sell-side sources said the industry’s inability to pass through higher pulp costs has intensified, while jumbo roll producers had increasingly incorporated larger volumes of off-grade pulp into 100% virgin fiber jumbo rolls.

“There is strong pressure to generate cash flow, which has led sellers to keep prices low despite rising costs. The market seems to have lost all rationality,” one sell-side source said.

A second sell-side source told Fastmarkets that suppliers had focused on strengthening relationships with their long-standing customers amid the heightened volatility.

“Pulp prices and higher freight costs have had a direct impact, and the aggressive pricing strategies adopted by the largest companies in the sector have made negotiations more difficult. At the same time, suppliers from Asia have been expanding aggressively into Mercosur,” the second sell-side source said.

A converter source said suppliers had been discussing potential price increases of 4-6% for August to offset accumulated cost inflation.

“Negotiations are reaching their limit, and we believe this adjustment will be necessary to maintain deliveries in August,” the converter said.

On the demand side, both buyers and sellers of jumbo rolls said Brazilian tissue demand in the away-from-home segment was stable to moderately weak in June and July, with consumption negatively affected by the school holiday period and lower commercial activity. Market participants added that stronger tourism and leisure activity had not been sufficient to offset weaker institutional demand.

Oversupply

Turning to supply-side developments affecting the tissue market in recent months, the new tariffs imposed by the United States on Brazilian exports had increased pressure on Brazilian tissue exporters to seek alternative markets.

At the same time, rising shipments of jumbo rolls produced in China and Indonesia to countries along South America’s Pacific coast have reduced export opportunities for higher-cost, non-integrated Brazilian producers, which have attempted to mitigate lost export sales by redirecting volumes to the domestic market.

In addition, customs data from several Latin American countries indicate that Argentine jumbo roll exports had increased significantly since October 2025, coinciding with the resumption of operations at Celulosa Argentina. Most shipments have been directed to Chile, though export statistics published by the Argentine government, compiled by INDEC, do not clearly reflect these trade flows.

Brazilian jumbo rolls made with 100% virgin fiber exported to Southern Cone countries were priced at $1,050-1,250 per tonne FOB in June, according to sources. Meanwhile, jumbo rolls shipped from East Asia to Latin America were traded at approximately $1,150-1,300 per tonne CIF during the same period, market participants told Fastmarkets. 

Against the backdrop of persistent oversupply, sources active in the Chilean jumbo roll market said prices in the country have remained stable, broadly following the same trend seen in Brazil. Meanwhile, Asian exporters said intense competition with Brazilian suppliers continues to pose downside risks to prices due to the excess supply.

Recycled grades

Prices for recycled tissue jumbo rolls were mostly stable, with the exception of tissue, jumbo rolls recycled white #1, 16 g/square meter, fob Brazil, which increased by 0.4% to 5,350-5,800 Reais per tonne. This grade is considered the highest-quality product among 100% recycled tissue jumbo rolls. Market participants said the modest increase reflected limited cost pass-through, though transaction volumes for this grade remain relatively low.

Fastmarkets’ assessment for tissue, jumbo rolls mixed fibers, 14 g/square meter, fob Brazil was 6,000-6,200 Reais per tonne in July, unchanged from a month earlier.

Fastmarkets’ assessment for tissue, jumbo rolls recycled white #2, 18 g/square meter, fob Brazil was 4,120-4,300 Reais per tonne in July, also unchanged from a month ago.

According to participants in the recycled jumbo roll market, negotiations have been relatively balanced because suppliers of white recovered paper had not implemented price increases.

Converted products

The converted tissue products market, spanning both retail and away-from-home segments, also failed to respond to price increase announcements made by suppliers during the first half of the year.

Sources told Fastmarkets that one major domestic tissue producer is considering implementing a new price increase in August. In addition, a non-integrated producer in southeastern Brazil has announced a 16% increase in prices for finished products, while other suppliers are pursuing increases at a more gradual pace or awaiting movements from larger players.

Follow our market coverage for ongoing analysis of tissue supply balances, trade flows and pricing developments.