News and Articles

Paper Buyers See Mixed Prices as Freight and Fibre Costs Increase

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Jul 29, 2026
  • Some paper offers rose by $20 to $50 per short ton.
  • Other buyers continued to receive stable or lower offers.
  • Production growth exceeded tissue consumption growth.
  • Surplus capacity restricted broad price increases.
  • Buyers can compare freight and fibre charges separately.

United States tissue-paper buyers received mixed pricing signals during July as higher input costs collided with abundant supply. Some domestic and imported parent-roll offers increased by $20 to $50 per short ton. Other buyers continued to receive unchanged or lower offers as mills and traders competed for orders.

Freight, fibre, recovered paper and pulp costs supported sellers’ attempts to raise prices. The increases did not spread evenly across the market because domestic capacity and imported rolls remained readily available. Several suppliers were reported to have excess production capacity, allowing buyers to negotiate lower prices for some virgin-fibre rolls.

Supply growth has reduced mills’ bargaining power. Parent-roll production increased 1.5 percent year over year in May, but total tissue consumption declined 1.4 percent. Average capacity utilisation slipped to 92.24 percent during 2026 from 93.18 percent in 2025.

The market differs by grade and purchasing channel. Recycled tissue faces pressure from recovered-paper costs, and imported paper is more exposed to ocean freight and tariff changes. Virgin-fibre grades can still attract aggressive offers when mills need orders to fill unused capacity. Buyers should compare each grade rather than accepting a broad increase across an entire paper contract.

Converters serving retail private-label programmes and away-from-home customers may see steadier demand than suppliers serving weaker channels. Seasonal travel, school purchasing and government contracts can support tissue and towel volumes during the third quarter. Demand timing can affect mill availability even when annual production remains above consumption.

Procurement teams should request an itemised explanation for price increases. Freight, pulp, recovered fibre and conversion charges should be separated where possible. This allows buyers to test whether a proposed rise reflects actual cost movement or a general attempt to improve mill margins.

Shorter pricing periods may suit buyers during an oversupplied market. Long fixed-price agreements can provide budget certainty, but they can also prevent customers from benefiting when suppliers discount excess capacity. Contracts can include volume bands, benchmark reviews and the right to seek alternate supply when delivered costs move outside an agreed range.

The July market gives buyers room to negotiate, but delivered costs remain exposed to transport and fibre movements. Competitive bidding across domestic and imported suppliers can help establish the real market level for each grade.

About the Author

Prakhar Panchbhaiya profile photo

Prakhar Panchbhaiya

Assistant Manager: Business Insights and Content

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