The global pulp and paper industry enters 2026 navigating a complex mix of pricing recovery, margin pressure, strategic consolidation, infrastructure investment, and sustainability-led transformation. While pulp prices are rising and selective price increases are taking hold, profitability remains under strain due to fiber inflation, energy volatility, FX pressures, and uneven demand.

Below is your comprehensive weekly industry intelligence briefing.

📈 Pricing & Market Movements

Fine Paper Price Increases Accelerate

• Arctic Paper announced an 8–10% price increase across coated and uncoated fine papers in Europe, effective April 1, 2026

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• Lecta confirmed an 8% increase on two-side coated woodfree grades, also effective April 1.

• Price actions reflect persistent pulp cost inflation, logistics pressures, and margin compression.

Pulp Markets Strengthen, But Caution Remains

• Eucalyptus pulp in China increased from $560–570/t to $580–590/t in January.

• A further $10/t increase is scheduled for March implementation.

• SCA raised European NBSK prices by $100/t, setting the new price at $1,710/t effective March.

However, sustainability of pricing momentum remains uncertain amid:

• Indonesian environmental restrictions impacting ~4 million tons of pulp supply.

• Fire-related disruptions in Chile.

• Climatic impacts across Europe.

💰 Financial Results & Corporate Performance

Strong Performers

Smurfit Westrock

• FY2025 Net Sales: $31.18B

• Adjusted EBITDA: $4.94B (15.8% margin)

• 2026 Outlook: $5.0–5.3B EBITDA

• Dividend: Increased 5% to $0.4523/share

• Capex Plan: Up to $2.5B

Klabin

• 2025 Revenue: R$20.7B (+5%)

• Adjusted EBITDA: R$7.848B (+7%)

• EBITDA Margin: 38%

• Leverage reduced to 3.3x

Huhtamäki

• Revenue: €3.96B

• Free Cash Flow: €311M

• Dividend increased to €1.14/share

• Achieved investment grade rating (BBB-)

Under Pressure

Mercer International

• Q4 Operating EBITDA: - $20.1M

• Q4 Net Loss: $308.7M

• $238.7M non-cash impairments (Peace River mill)

Södra

• 2025 Operating Loss: SEK 1.29B

• Contribution margin dropped from 33% to 24%

West Fraser

• FY Sales: $5.46B (down from $6.17B in 2024)

• Adjusted EBITDA: $56M (vs $673M prior year)

Empresas CMPC

• Downgraded to BBB- by S&P due to higher leverage and weaker EBITDA.

🏭 Capacity Expansions, Closures & Upgrades

Closures & Rationalization

• Smurfit Westrock closing 127,000 tpy SBS machine in Quebec.

• International Paper shutting plants in Spain (200 jobs impacted).

• Finnish industry experts warn of possible pulp mill closures due to overcapacity.

Capacity rebalancing continues globally as producers prioritize competitiveness over volume.

Expansions & New Projects

MEPCO (Saudi Arabia)

• Doubling capacity from 450,000 tons to 900,000 tons

• Tissue expansion to 120,000 tpy

Alliance International (UAE)

• New 500 TPD specialty paper mill project

KPPL (India)

• $89M expansion

• Target revenue: $180M annually

ICT UK

• New tissue machine started in Deeside, Wales

• Third ANDRITZ OCC line (330 tpd)

Indah Kiat (Indonesia)

• 2,000 tpd OCC line commissioned

🔄 M&A Activity & Strategic Investments

Kemira Acquires SIDRA Wasserchemie (€75M)

• Strengthens coagulant position in Europe

• SIDRA: €40M revenue, €10M EBITDA

Kingswood Acquires Coveris Paper Unit

• Rebrands as Paragon Print & Packaging

Inovar Packaging Acquires Kiliper Corporation

• Expands Midwest flexible packaging footprint

Nippon Paper & Pentarch Forestry

• Acquired NZ softwood chip producer

• Strengthens fiber security and export positioning

🚢 Trade Policy & Regulatory Developments

U.S. AD/CVD Duties

• Up to 540% duties on Chinese molded fiber imports

• Up to 260% on Vietnamese imports

• Orders effective for minimum five years

EU Anti-Subsidy Probe

• Lightweight thermal paper imports from China now registered

• Retroactive duties possible

Trade enforcement actions are reshaping competitive landscapes in fiber packaging and specialty papers.

🌱 Sustainability & Innovation

Stora Enso Climate Plan

• Net-zero by 2040

• 50% GHG reduction by 2030

• 61% Scope 1 & 2 reductions already achieved

Saica Launches 100% Recycled Paper Adhesive Tape

Tetra Pak

• Paper-based barrier scaled to high-speed aseptic lines

• 87% renewable carton content

Metsä Group

• Lignin demo plant (2 tons/day)

• Exploring fossil material replacement

BASF (India)

• New dispersions production line

Maromba Papéis

• 35% energy reduction in pulp prep line

• R$200,000 annual savings

⚙️ Technology & Automation Upgrades

• Valmet FlexBatch now available for DNAe DCS

• Valmet QCS for Papeterie Le Bourray (France)

• Valmet IntelliTissue machines for Yusen Group

• AFT refiner installation at Essity Mannheim

• Sappi Maastricht deploys ABB fiber measurement tech

Automation investments focus on:

• Energy reduction

• Fiber optimization

• Process stability

• Quality consistency

• Digital compliance

🏗 Infrastructure Investments

Arauco (Brazil)

• R$2.8B railway project

• 47 km connection to Port of Santos

• Capacity to handle 3.5M tons pulp annually

• Completion: 2027

Chilean pulp producers strengthening export logistics amid global growth strategies.

📦 Packaging Innovation

• RDM launches Vincicoat PLUS (15–20% stronger recycled cartonboard)

• Sonoco paper-based can adopted by Earthnutz (95% paper-based)

• Ahlstrom launches Acti-V release liners with recycled content

Fiber-based packaging continues scaling commercially as plastic alternatives accelerate.

⚠️ Safety & Labor Developments

• U.S. Chemical Safety Board investigating fatal hydrogen sulfide release at Woodland Pulp Mill.

• Unifor selects Domtar as pattern bargaining target for 14,000 forestry workers in Eastern Canada.

🎪 Industry Events

Moulded Fibre Packaging Europe 2026

• May 27, Amsterdam

• Focus: scalable fiber alternatives

Gulf Print & Pack 2026

• March 31–April 2

• Dubai World Trade Centre

• Technology & digitalization spotlight

📊 Industry Outlook

The paper industry in early 2026 reflects structural recalibration rather than cyclical recovery:

• Pricing momentum improving

• Capacity rationalization ongoing

• Trade enforcement intensifying

• Sustainability scaling industrially

• Capital allocation increasingly disciplined

• Automation and efficiency investments prioritized

While pulp price recovery offers optimism, margin durability will depend on:

• Fiber cost stability

• Energy normalization

• FX stabilization

• Demand recovery in Europe and China

The sector remains cautious but strategically active.