Mexican containerboard, European newsprint and China’s Covid-19 lockdowns: Top paper market headlines

Containerboard prices rise in Mexico, pulp demand in China is impacted by lockdowns and European newsprint prices increase again

Mexico containerboard prices rise in April on high production costs


Prices for recycled containerboard increased in Mexico in April, with producers succeeding in implementing part of a previously announced price hike for linerboard and medium.

  • Sources reported that prices moved up by 700 pesos per tonne
  • Negotiations started after prices increased in the US and rising production costs in Mexico
  • Corrugators are demanding more paper from local producers in order to substitute for imports
  • Imported US kraft linerboard increased by $30 per tonne in April

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Covid-19 lockdowns in China dent fundamental pulp demand


China’s strict anti-Covid-19 lockdowns, most notably in Shanghai, have thrown a wrench into paper and board (P&B) mill logistics across the country, depressing fundamental demand for market pulp.

  • Producers state they have product ready but no truck drivers to make deliveries
  • Lockdown measures have also hindered the pickup of pulp from ports for delivery to mills
  • A sign of a slowdown is the decline of resale South American bleached hardwood kraft (BHK) pulp in the domestic market.

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European newsprint prices rise again due to high gas prices and low paper availability


Despite the fact that prices rose to all-time highs in January, newsprint demand continued to be higher than supply, constraining buyers’ negotiating power, while extremely high gas prices forced paper mills to implement further price increases or energy surcharges from mid-March or the beginning of April.

  • April, newsprint prices inched up further as paper producers imposed additional energy surcharges
  • Norske Skog and UPM impose additional energy surcharges
  • Many market sources believe that newsprint demand will start to decline substantially in 2022 because of the incredibly high sales prices
  • The printing industry, which is struggling to absorb paper price hikes as well as other rising input costs

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Case Study

Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.

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In the open consultation, Fastmarkets FOEX did not propose any changes and the feedback received was fully supportive to our current methodology. No material changes were made to the current methodology. A newly dated methodology document will be posted soon. For all Fastmarkets FOEX pricing notices and to view our methodology guides please see here.
This consultation, until which is open until June 24, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications, and publication frequency. You […]
Despite a $30 per tonne price increase for containerboard exports from the US to Mexico this year, the domestic market for the product still has not shown any reaction in terms of demand and prices, sources told Fastmarkets during a visit to the country in the week beginning on May 13. The overall sentiment is […]
A big question mark for Brazilian containerboard market participants right now is the impact the Rio Grande do Sul floods will have on demand in the country. Although hard to estimate, especially amid reduced gross domestic product (GDP) forecasts, we still believe that the floods will have a somewhat limited impact on the demand for […]
Fastmarkets FOEX would like to thank those who took the time to respond to the consultation. Fastmarkets FOEX did not propose any changes to the methodology. The feedback was fully supportive of the current methodology. To summarize, this open consultation does not lead to material changes in the current methodology. A newly dated methodology document […]
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