South East Asia

Over the past three months, recovered paper prices from the EU have eased from US$ 170 per tonne to around US$ 150, driven by softer demand and sluggish cartonboard markets. Meanwhile, a decisive role is being played by freight costs from the EU, which recently plunged US$ 100-200 per container. South East Asia’s mills are grappling with high costs and are duly shifting between local and imported fibre, raising prices domestically even as they curb production during weaker demand periods.

Demand from countries such as Vietnam, Indonesia and Thailand has remained steady but cautious, with buyers negotiating harder as they anticipate further freight cost corrections. Regional converters have also reported operating at reduced capacities, citing high inventories and a slow recovery in packaging exports. Some mills in Vietnam and Indonesia have temporarily adjusted their purchase volumes, balancing between low-priced imports from Europe and competitive supply from the Middle East. Meanwhile, concerns over inconsistent container availability and longer transit times have prompted South East Asian buyers to spread their sourcing across multiple origins.

Looking ahead, the market is awaiting a revival in Asian paper demand and sustained shipping relief in order to steer closer towards stabilisation.