Global summary

The global recovered paper market became progressively tighter during the second quarter and in the first half of July.

The main driver was not a broad recovery in demand for finished paper and packaging, but a reduction in recovered fibre availability. Collection volumes remained weak in several major markets, while mills continued to protect or rebuild inventories. This created stronger competition for OCC, mixed paper and other key grades, supporting prices despite generally moderate downstream demand.

At the same time, logistics became a central market factor. Higher fuel costs, maritime disruption, longer transit times, carrier surcharges and reduced transport predictability increased the cost and complexity of international trade. As a result, the commercial outcome of transactions depended increasingly on freight exposure, routing, delivery reliability and contractual risk allocation rather than on recovered paper prices alone.

International trade flows persisted but were more selective. Buyers in Asia continued to play an important role in balancing European and North American markets, although purchasing decisions became increasingly short-term and sensitive to inventories, freight costs and finished paper demand. Quality, contamination levels, documentation and traceability also gained greater importance, particularly in markets applying stricter import controls.

Across the main regions, several common trends were visible: lower recovered paper generation; reduced fibre availability; low or carefully managed mill inventories; stronger competition between domestic mills and exporters; firmness in OCC and other brown grades; higher transport, energy and operating costs; greater regulatory and quality-related complexity; and continued weakness or unevenness in finished packaging demand.

The market therefore entered mid-July in a firm but fragile position: prices were supported by restricted supply and operational pressures rather than by strong underlying growth in paper and packaging consumption.