- Color coated board sentiment in Asia moved upward in Q1’26, mainly due to tighter pulp availability and steady packaging-linked demand.
- Feedstock pressure increased as tighter pulp availability and higher freight risk raised cost concerns for paperboard producers during Q1’26.
- Downstream demand from packaging, food, consumer goods, and printing stayed need-based, but higher freight risk limited any sharp market weakness.
In Asia, the color-coated board market sentiment strengthened during Q1’26 as upstream pulp availability tightened and operating costs remained under pressure. China’s pulp port inventory declined after an earlier stock build-up, which supported raw material sentiment for paperboard producers. China’s industrial output rose 6.3% in January-February, and manufacturing grew 6.6%, keeping baseline demand firm from packaging, printing, food, and consumer goods sectors. However, downstream buying remained need-based because finished board demand was not strong enough for aggressive restocking. In the latter half of the quarter, the Iran war and Strait of Hormuz closure added to the upward pressure by raising freight risk and fuel-linked shipping costs for pulp and paperboard trade routes into Asia. This prevented buyers from pushing for lower values, even though high finished-paper inventories kept demand cautious.
Analyst Insight
According to Procurement Resource, color coated board sentiment may remain supported if pulp availability stays tight and shipping risk continues, while weak restocking may limit further upward movement.