- Cellulose prices showed a firm to slightly upward trend in Q1’26 as global supply chain risks increased after the Iran war and Strait of Hormuz disruption, raising freight and input cost uncertainty.
- Feedstock pressure remained strong as wood pulp, energy, and chemical costs stayed elevated, supported by higher producer price indices for pulp and broader industrial inputs.
- Downstream demand remained mixed, with packaging and hygiene segments supporting consumption while printing and writing paper demand stayed weak.
Cellulose prices in North America followed a slightly upward trend in Q1’26, driven by cost-side pressure and uneven downstream demand. Upstream, wood pulp prices remained supported as producer price indices for pulp products stayed active through the quarter, reflecting continued cost pressure across cellulose production. Energy and logistics costs also increased after the Iran war disrupted global shipping routes, with the Strait of Hormuz carrying nearly one-quarter of global seaborne oil trade, raising fuel and freight expenses. This added indirect cost pressure despite North America’s strong domestic pulp supply base. On the demand side, packaging and specialty paper segments supported cellulose consumption, with packaging paper shipments showing year-on-year growth in February, indicating steady industrial and e-commerce demand. However, printing and writing paper shipments declined in early Q1, limiting overall demand strength and creating a split market.