Asia

The European recovered paper export market remained firm during the first half of 2026 despite uncertain global market conditions. Limited fibre availability in Europe and strong competition from domestic paper mills supported export prices, even though Asian buying became more cautious.

Compared with the beginning of the year, European OCC export prices increased by some 8-12% - mainly as a result of tight supply rather than stronger demand. India remained the most active export market while buyers in Indonesia, Vietnam, Malaysia and Thailand focused mainly on short-term purchasing because of comfortable inventories and weaker finished paper demand.

Logistics have become a key market driver. Ocean freight rates from Europe to Asia have increased by some 20-35% since May as a result of Red Sea disruption, higher fuel costs, carrier surcharges and limited vessel capacity. At the same time, European inland haulage costs have risen by some 3 to 6%, reflecting higher diesel prices and labour costs.

Overall, the market remains balanced. Limited recovered paper generation in Europe continues to restrict export availability, while domestic mills remain strong buyers. Asian mills are purchasing cautiously, preventing excessive price increases but also avoiding any significant market correction.

Looking ahead, the market is expected to remain generally stable. Export prices may strengthen by a further 3 to 5% if European supply tightens or freight costs continue to rise, although future developments will largely depend on logistics, geopolitical conditions and the recovery of paper demand across Asia.