Nippon Paper Industries will suspend operations at its wholly owned Hungarian subsidiary Nippon Paper Chemicals Europe (NPCE) from 31 December 2026, citing a slower-than-expected EV market and intensifying competition. Production of carboxymethylcellulose (CMC) for lithium-ion battery applications will be consolidated at the group's Gotsu plant in Japan. The group expects to book an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027, and has not given a date for resuming Hungarian operations.
Why this mattersSlower EV battery demand growth in Europe is prompting Japanese materials producers to retreat from local capacity built for that market.
- NPCE will suspend operations on 31 December 2026.
- Nippon Paper expects an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027.
- NPCE, based in Vacratot, Hungary, had 24 employees as of 31 August 2026.
- NPCE reported revenue of EUR 74,000 and an operating loss of about EUR 5.98 million for the year ended 31 December 2025.
- NPCE was established in September 2022 to produce SUNROSE MAC CMC for lithium-ion batteries; local production began in 2025.
- CMC production will be consolidated at Nippon Paper's Gotsu plant in Japan.
- The Vacratot plant represented an investment of about HUF 15 billion (EUR 41.4m), including HUF 2.3 billion (EUR 6.4m) of Hungarian state support
- The site was expected to create around 60 jobs and generate about EUR 50m in annual sales
- Commercial production had started less than two years before the suspension
The United States has revised the range of Canadian-origin goods subject to its additional 50% Section 338 duty. It removes corrugated boxes, some paper sacks and bags, moulded pulp articles and plastic-coated bleached paperboard, and adds unbleached kraft paper, self-adhesive paper, pressure-sensitive labels and other graphic and coated paper grades. The changes apply to goods entered from 12:01 a.m. eastern time on 30 October 2026, on top of any Section 232 duties. It is the second revision of coverage since the duties took effect on 22 August 2026, after one on 8 September.
Why this mattersA further reshuffle of which Canadian paper, board and label categories face a 50% US duty changes sourcing costs and competitiveness for converters and brand owners trading across the border.
- Changes take effect for goods entered for consumption at or after 12:01 a.m. eastern time on 30 October 2026
- Removed from the 50% duty: corrugated boxes (HTSUS 4819.10.00), other paper sacks and bags (4819.40.00), moulded and other pulp articles (4823.70.00, 4823.90.10) and plastic-coated bleached paper and paperboard over 150 g/m² (4811.51.20, 4811.51.40)
- Newly added to the 50% duty: unbleached kraft paper (4804.31.60), self-adhesive paper (4811.41.10), plastic-coated printing and other paper (4811.59.20, 4811.59.40), paper sacks with a base of 40 cm or wider (4819.30.00) and unprinted pressure-sensitive labels (4821.90.20)
- The Section 338 duties apply in addition to duties under Section 232 of the Trade Expansion Act of 1962
- The 50% duty took effect on 22 August 2026 after a three-day suspension under Proclamation 11056; Proclamation 11065 first revised the coverage on 8 September 2026
- The duties stem from Proclamation 11048, based on a determination that Canadian motor-vehicle tariff arrangements discriminated against US commerce
The Indian Paper Manufacturers Association has asked the Prime Minister to intervene after domestic coal costs rose more than 50% in two months amid irregular railway rake supply, warning some mills may have to suspend production on commercial grounds. IPMA wants priority coal and rake allocation for pulp and paper captive power plants, on a par with thermal power stations, and assured delivery of at least 75% of coal volumes under existing fuel supply agreements.
Why this mattersEnergy is 15-20% of Indian paper production cost, so a sustained coal squeeze threatens mill margins and output just as imports intensify competition.
- Coal costs for Indian paper mills have risen over 50% in the past two months, per IPMA.
- Energy accounts for around 15-20% of total paper production cost in India.
- IPMA wants captive power plants at pulp and paper mills given coal and rail-rake priority equal to thermal power plants.
- The association is asking for regular supply of at least 75% of coal volumes covered under Fuel Supply Agreements or linkages.
- Mills are reportedly being forced to buy coal via imports or open-market auctions at higher prices due to inadequate FSA allocations and rake shortages.
- IPMA president Pawan Agarwal said manufacturers face mounting margin pressure with limited ability to pass on higher fuel costs.
Italian prices for kraftliner and recovered-fibre (AP) containerboard rose again in October 2026, according to a EUWID market report. Producers of both virgin-fibre and recovered-fibre grades had already implemented part of their original increase in September, and talks on costs, prices and availability continued to shape the market in October.
Why this mattersFurther containerboard price increases in Italy, following partial gains in September, raise input costs for Italian corrugated box makers and their customers.
- Italian kraftliner and recovered-fibre (AP) containerboard prices rose again in October 2026
- Virgin-fibre and recovered-fibre producers had implemented part of their original price demand in September 2026
- Costs, prices and availability dominated Italian containerboard market talks in October 2026
Petkim Petrokimya Holding has selected Univation's UNIPOL PE Process technology for a planned polyethylene complex at its Aliaga-Izmir site in Türkiye, ahead of a final investment decision. The project envisages 850,000 tonnes a year of licensed PE capacity across two 425 kTA swing reactor lines, which Univation describes as one of the largest PE technology licences awarded in Türkiye.
Why this mattersAdded domestic PE capacity would affect resin availability and import dependence for Turkish and regional flexible and rigid plastic packaging converters.
- Petkim selected Univation's UNIPOL PE Process Technology for a planned complex in Aliaga-Izmir, Türkiye
- Planned capacity is 850,000 tonnes a year of polyethylene across two 425 kTA swing reactor lines
- The selection comes ahead of Petkim's final investment decision on the project
- It would be the first UNIPOL PE installation at the Petkim site
- Petkim is a subsidiary of SOCAR, the State Oil Company of Azerbaijan
- Univation describes the project as one of the largest PE technology licences awarded in Türkiye
Valmet will deliver a complete bleached chemi-thermo mechanical pulping (BCTMP) line, including an evaporation plant, flash drying and baling, to ITC's Bhadrachalam paperboard mill in India. The order was booked in Valmet's second-quarter 2026 orders received, with the value undisclosed, and the line is scheduled to start up in the second quarter of 2028.
Why this mattersThe upgrade lets ITC produce higher-quality pulp more energy-efficiently, strengthening a leading Indian paperboard producer's cost and quality position.
- BCTMP line capacity is 350 bone-dry tonnes per day
- Order was included in Valmet's Q2 2026 orders received; value undisclosed
- New line scheduled to start up in Q2 2028
- Scope includes BCTMP evaporation plant, flash drying, baling, Valmet DNA control system and a new White Liquor Disc Filter
- Uses Valmet's HT-CTMP high-temperature technology for improved fibre quality and lower refining energy use
- ITC Bhadrachalam has used Valmet technology since a multilayer paperboard machine delivery in the 1990s
Kazakhstan is adding paper and board recycling capacity, but underdeveloped separate collection and sorting of paper waste risks leaving the new plants short of recovered fibre. The largest project, Sever-Kombinat's KZT 6.9bn plant in Kostanay, had five of seven lines in operation and is scheduled to start up in the fourth quarter of 2026, with capacity to process up to 15,000 tonnes of paper waste and 2,300 tonnes of Tetra Pak packaging a year.
Why this mattersCollection and sorting gaps could leave Kazakhstan's new recycling capacity underutilised, limiting the growth of a nascent domestic recovered-fibre supply chain.
- Sever-Kombinat's KZT 6.9bn plant in Kostanay had five of seven production lines in operation, with launch scheduled for Q4 2026
- At design capacity the plant will process up to 15,000 tonnes of paper waste and 2,300 tonnes of Tetra Pak packaging a year into corrugated board, boxes, paper and egg trays
- A paper and board project in Aktobe region is worth more than KZT 10bn; an Abay region project plans to recycle over 17,500 tonnes of paper waste a year
- The utilisation fee has funded 30 waste-management projects worth about KZT 116bn
- Kazakhstan collected 119,900 tonnes of recovered paper, board and paper waste in 2023; paper and board made up 9.4% of sorted municipal waste in 2025
- Kostanay region recycled or disposed of about 75,000 of 276,000 tonnes of municipal solid waste last year; its recycling share was 23% in H1 2026 against a 28% annual target
The Bureau of International Recycling's Q3 2026 European report finds recovered paper prices steady or slightly higher in Germany, France, Italy and the UK, driven by scarce collected fibre rather than stronger demand. European paper and board output fell about 1.6% in 2025 with early 2026 data still showing a year-on-year contraction. Spain diverges, with recovered corrugated prices under pressure from rising imports and ample supply despite higher domestic consumption.
Why this mattersA price rise built on fibre scarcity rather than demand recovery leaves mills exposed if collection volumes normalise in the fourth quarter.
- BIR's Q3 2026 European report was compiled by John Atehortua of REMONDIS Trade and Sales.
- Recovered corrugated (OCC) prices rose notably in September, led by UK export demand and low collection volumes.
- European paper and board production fell about 1.6% in 2025, with early 2026 indicators still showing year-on-year contraction.
- Spanish corrugated grade 1.05 average prices rose from EUR 73.17-73.62 per tonne in Q1 2026 to EUR 81.45-82.18 per tonne in Q2 2026, per Universidad Complutense de Madrid/RECIPAP data.
- Spain's recovered corrugated market remains under pressure from rising imports and abundant supply despite growing domestic consumption.
- BIR flags upcoming 2027 regulatory changes affecting waste trade as a factor operators must prepare for.
Industry representatives say GST refunds have been stuck for months for many of Ludhiana's more than 600 corrugated and paperboard box manufacturing units, caused by an inverted duty structure that taxes finished cartons at 5% while raw materials such as kraft and duplex paper are taxed at 18%. Some refunds have been pending since January and February 2026, manufacturers say, while paper prices have risen nearly 30% over the past year, squeezing margins further. Industry bodies have asked the government to streamline refunds and scrap the inverted duty structure.
Why this mattersA prolonged working-capital squeeze across a major Indian corrugated cluster could cut output and orders, with knock-on effects for paper suppliers and packaging customers.
- Ludhiana has more than 600 corrugated box manufacturing units, according to the Punjab Corrugated Box Manufacturers Association
- Cartons, boxes and cases attract 5% GST while kraft paper, duplex paper and paperboard are taxed at 18%
- GST refunds have been pending for several manufacturers since January and February 2026
- Paper prices have risen nearly 30% over the past year
- A duplex and kraft paper supplier reports customers placing fewer and smaller orders due to liquidity issues
- Industry associations have called for an automated refund mechanism and a uniform tax structure across the supply chain
Speira has commissioned a new furnace for beverage can scrap at its Rheinwerk site in Neuss, Germany, with annual capacity of about 60,000 tonnes. The company invested roughly EUR 40m (USD 44.6m) in the furnace and related upgrades, including adapting a casting line and adding 6,500 tonnes of scrap storage. Red Bull, which sources recycled aluminium from Speira for its cans, attended the opening.
Why this mattersAdds European scrap-processing capacity for can stock at a time when beverage brands are pushing for more recycled aluminium content.
- Speira invested about EUR 40m (USD 44.6m) in the Rheinwerk site upgrade
- New furnace has annual capacity of about 60,000 tonnes of can scrap
- Third of four casting lines adapted for recycled-alloy processing
- New scrap storage area of 6,500 tonnes built in former primary smelter halls
- Furnace is designed to allow future hydrogen operation if a hydrogen network connection becomes available
- Red Bull uses recycled aluminium from Speira for its energy drink cans
Hong Kong's Environmental Protection Department cut the mainland China export allowance for waste paper under its collection contracts to zero from October 2026, routing collected paper to the recycled-pulp mill at Tuen Mun EcoPark, which began operating in July. The change also ended an export subsidy of HKD 400 (USD 51) per tonne; balers say their margins are now thin or negative, and one Hong Kong Island operator has cut five of its twelve staff. The department says exports to other markets are not banned and the transition has been broadly smooth.
Why this mattersA government-mandated switch from export to domestic pulping is reshaping Hong Kong's recovered-paper supply chain and the export flows that feed mainland Chinese mills.
- The Tuen Mun EcoPark recycled-pulp mill began operating in July 2026
- From October 2026 contractors' export caps for waste paper to mainland China were set at zero, directing supply to the mill
- The change ended an export subsidy of HKD 400 (USD 51) per tonne
- One Hong Kong Island baler's volumes fell from 3,500 tonnes in July to 2,773 tonnes in September and 960 tonnes in the first half of October; it cut five of twelve staff
- The mill buys waste paper at HKD 1,200-1,295 (USD 153-165) per tonne; recyclers say transport and handling costs leave thin or negative margins
- The department says overseas exports are not banned and January-September 2026 recovery of about 410,000 tonnes was similar to a year earlier
Czech petrochemicals producer Orlen Unipetrol has declared force majeure on polypropylene deliveries from its Litvinov plant following a fire. The company expects the outage to halt production until at least July, disrupting resin supply to packaging converters that depend on the site.
Why this mattersA multi-month stoppage at a major Czech PP source tightens regional resin supply and pressures converters reliant on Litvinov material.
- Orlen Unipetrol declared force majeure on polypropylene from its Litvinov plant after a fire.
- Production at the site is expected to remain halted until at least July.
- Litvinov is Orlen Unipetrol's domestic Czech production site.
- The disruption affects polypropylene supply to downstream converters.
China's State Administration for Market Regulation has published a recommended national standard for polyhydroxyalkanoate (PHA) blown film used in commodity packaging, effective 1 April 2027. The standard defines technical requirements so converters and brand owners can verify film performance rather than relying on general biodegradability claims.
Why this mattersA defined performance standard lets Chinese converters and brand owners qualify PHA film against incumbent plastics on tested criteria rather than marketing claims.
- China's State Administration for Market Regulation published two revised recommended national standards in the biodegradables field, including one for PHA blown film for commodity packaging
- The PHA blown film standard takes effect on 1 April 2027
- The standard gives material makers and packaging buyers specific technical criteria for film performance
The UK Trade Remedies Authority issued a provisional affirmative determination on 23 October 2026 in a safeguard case brought by Alpek Polyester. It found that a 68% rise in PET resin imports between 2021 and 2025 caused serious injury to UK producers. It proposes a provisional tariff-rate quota of 192,963.17 tonnes from 1 December 2026 to 31 May 2027, allocated 77.6% to the EU, 5.4% to Mexico, 3.7% to Indonesia and 3.1% to Vietnam, with a 65% additional duty on volumes above quota.
Why this mattersPET bought outside the EU faces a 65% duty once small country quotas fill, steering UK bottle-grade resin sourcing towards EU suppliers.
- TRA published a provisional affirmative determination on 23 October 2026 in safeguard case SG0094, opened on 5 August 2026 at Alpek Polyester's request.
- Investigation covers virgin PET (viscosity 74 ml/g or above) and recycled PET under HS codes 3907.61 and 3907.69.
- UK PET imports rose 68% over 2021-2025 while domestic output fell continuously.
- Proposed tariff-rate quota of 192,963.17 tonnes runs from 1 December 2026 to 31 May 2027.
- Quota shares: EU 77.6%, Mexico 5.4%, Indonesia 3.7%, Vietnam 3.1%, other sources 10.2%.
- Imports above quota face a proposed additional safeguard duty of 65%; the provisional measure lasts at most 200 days.
The European Commission has opened a formal antitrust investigation into Swiss minerals group Omya over alleged abuse of a dominant position in the supply of calcium carbonate to paper manufacturers. The Commission suspects Omya required paper-industry customers to source all or most of their calcium carbonate from it, potentially shutting out rival suppliers in Europe. Omya did not immediately respond to a request for comment.
Why this mattersA finding against Omya could lower calcium carbonate procurement costs for European paper and board makers and open the field to rival mineral suppliers.
- European Commission announced the investigation on 23 October 2026.
- The probe targets Omya, a Swiss supplier of calcium carbonate.
- The Commission alleges Omya may have required paper-industry customers to buy all or most of their calcium carbonate needs from it.
- Calcium carbonate is used in papermaking to cut production costs and improve brightness, opacity, smoothness and printability.
- The Commission says Omya's practices may have limited rival suppliers' ability to compete for customers in Europe.
SCA reported third-quarter 2026 EBITDA of SEK 1,631m (USD 164m), up 25% on the second quarter and down 1% year-on-year, as higher kraftliner prices and lower maintenance and raw material costs offset weak pulp and sawn timber markets. Net sales rose 5% year-on-year to SEK 5,248m (USD 528m) on higher delivery volumes, while nine-month EBITDA remained 24% below the same period of 2025.
Why this mattersSequential recovery in containerboard pricing signals improving conditions for European kraftliner producers even as pulp and sawn timber markets stay weak.
- Q3 2026 EBITDA was SEK 1,631m (USD 164m), up 25% from Q2 and down 1% from SEK 1,644m (USD 165m) a year earlier
- Further kraftliner price increases lifted SCA's average containerboard selling prices versus Q2, on robust European demand
- Q3 net sales rose 5% year-on-year to SEK 5,248m (USD 528m) on higher delivery volumes
- EBITDA margin was 31.1% in Q3 2026, against 32.9% a year earlier and 25.3% in Q2 2026
- Q3 operating profit was SEK 1,047m (USD 105m), down from SEK 1,112m (USD 112m) a year earlier and up from SEK 724m (USD 73m) in Q2
- Nine-month net sales fell 3% to SEK 15,141m (USD 1,522m) and EBITDA fell 24% to SEK 4,041m (USD 406m)
- Q3 net profit was SEK 772 million, EPS of SEK 1.1, beating the forecast of SEK 0.9809 by about 12%
- Containerboard EBITDA rose 130% to SEK 446 million on stronger pricing and demand
- SCA will raise Q4 kraftliner prices by EUR 8 per tonne for brown grades and EUR 60 per tonne for white grades
- Net debt stood at SEK 11 billion, with leverage of 2.0 times and net debt to equity of about 10%
Swedish pulp producer Rottneros reported third-quarter 2026 EBITDA of USD 3m (SEK 26m), against a loss of USD 2m (SEK 21m) a year earlier, as lower pulp wood prices cut variable costs by USD 5m (SEK 51m). Total pulp production rose 8.8% to 79,300 tonnes, led by higher CTMP output at the Rottneros Mill, while net turnover slipped to USD 57m (SEK 570m) from USD 58m (SEK 574m). The annual maintenance shutdown at the Vallvik sulphate mill began at the end of September and will weigh on fourth-quarter availability.
Why this mattersLower pulp wood prices in an oversupplied Swedish wood market are easing variable costs for pulp producers, as Rottneros' USD 5m (SEK 51m) saving shows.
- Q3 2026 EBITDA was USD 3m (SEK 26m) against a USD 2m (SEK 21m) loss in Q3 2025, an improvement of USD 5m (SEK 47m).
- Total pulp production rose 8.8% to 79,300 tonnes from 72,900 tonnes.
- CTMP output at the Rottneros Mill rose to 21,200 tonnes from 15,400 tonnes.
- Sulphate pulp output at the Vallvik Mill was stable at 58,100 tonnes.
- Variable costs fell by USD 5m (SEK 51m) on lower pulp wood prices, as wood supply rose and demand softened.
- The annual maintenance shutdown at Vallvik began at the end of September, affecting Q4 availability.
China's national average corrugated paper price rose CNY 23 (USD 3) per tonne in the first half of October 2026 to CNY 3,240 (USD 486), as mills issued peak-season price-increase notices. By 22 October it had eased to CNY 3,224 (USD 483) per tonne, down CNY 16 (USD 2), as producers that had cut output resumed production.
Why this mattersMills' pricing power in China's corrugated market remains weak, with restart-driven supply quickly offsetting peak-season increase notices.
- The national average corrugated paper price reached CNY 3,240 (USD 486) per tonne on 15 October 2026, up CNY 23 (USD 3) or 0.7% from the start of the month
- By 22 October 2026 the average had fallen to CNY 3,224 (USD 483) per tonne, down CNY 16 (USD 2)
- The rise and fall took about two weeks within the traditional peak-season window
- Mills' price-increase notices had less effect than the market expected
- Producers that had previously cut output resumed production during the period
Attempts by some German producers to raise prices for recycled corrugated case material again in October 2026 have not succeeded, EUWID reports, and prices are stable. Coated white-top testliner is the only grade still subject to further price negotiations, while gas and recovered paper prices are rising.
Why this mattersStable prices despite rising gas and recovered paper costs squeeze German recycled containerboard margins, with coated white-top testliner the only grade still under negotiation.
- Some producers' attempts to raise recycled corrugated case material prices in Germany in October 2026 came to nothing
- Recycled containerboard prices are reported stable
- Coated white-top testliner is the only grade still under further price negotiations
- Gas prices and recovered paper prices are rising, adding cost pressure
The European Commission launched a public consultation on 21 October 2026 on the role of bio-based plastics in packaging policy, running until 13 January 2027. Conducted under Article 8 of the Packaging and Packaging Waste Regulation and the EU Bioeconomy Strategic Framework, it will inform a possible assessment of demand measures, targets and sustainability requirements for bio-based feedstock, which could lead to a legislative proposal.
Why this mattersA future EU framework or targets for bio-based feedstock would reshape sourcing and investment decisions across plastic packaging producers and converters.
- Consultation launched 21 October 2026, open until 13 January 2027
- Conducted under Article 8 of the Packaging and Packaging Waste Regulation and the EU Bioeconomy Strategic Framework
- Open to manufacturers, converters, raw-material suppliers, bio-based plastics producers, recyclers, brand owners and retailers
- Aims to assess market demand measures, targets and possible sustainability requirements for bio-based feedstock
- Feedback may lead to a legislative proposal establishing a framework for bio-based feedstock in plastic packaging
- UK converter Duo Packaging says the UK Plastic Packaging Tax treats bio-based plastics the same as fossil-based plastics, disadvantaging low-carbon alternatives.
Aliplast, the plastics recycling arm of Italian utility group Hera, has opened its R3GID recycling plant in Modena, Italy, with capacity for up to 30,000 tonnes a year of recycled polymers from rigid plastic waste. The EUR 48.8m (USD 54.8m) investment includes EUR 7.7m (USD 8.7m) from Italy's national recovery plan and uses Nextchem's NX Replast technology, targeting recycled-content demand under the EU PPWR and End of Life Vehicles rules.
Why this mattersThe plant adds scarce European rigid-plastics recycling capacity against a 2040 shortfall Hera puts at 5.7m tonnes, cutting Italian manufacturers' reliance on imported recycled polymer.
- Capacity of up to 30,000 tonnes of recycled rigid polymers a year
- Total investment of EUR 48.8m (USD 54.8m), including EUR 7.7m (USD 8.7m) from Italy's National Recovery and Resilience Plan
- Output has certified purity above 99%, with properties said to be comparable to virgin plastics
- The technology was developed with Nextchem using its NX Replast upcycling process
- The plant uses treated water and power from Hera's adjacent Modena wastewater and waste-to-energy facilities
- Hera says the plant avoids about 30,000 tonnes of CO2-equivalent emissions compared with virgin plastic production
Valmet is supplying cooking, fiberline and recovery island technology for a new pulp mill being built by Century Sunshine in Rizhao, Shandong province, China. The order, booked in Valmet's second-quarter 2026 intake, is valued above EUR 100m (USD 112m), with the mill due to start up in June 2028. The project is the first phase of Century Sunshine's plan to add 2.65 million tonnes of annual paper capacity to substitute plastics with paper-based products.
Why this mattersThe project expands Chinese pulp self-sufficiency for packaging paper production, reducing import dependence and supporting a plastic-to-paper substitution drive.
- Valmet's order value exceeds EUR 100m (USD 112m), undisclosed exact amount.
- Order booked in Valmet's second-quarter 2026 order intake.
- Mill designed for 1.2 million tonnes of hardwood or softwood pulp plus 400,000 tonnes of softwood pulp annually.
- Start-up expected June 2028.
- Part of Century Sunshine's three-phase 'Paper-for-Plastic' programme targeting 2.65 million tonnes of added annual paper capacity.
- Scope includes cooking and fiberlines, evaporation plant, recovery boiler, ash treatment and white liquor plant, designed to be fossil-fuel free.
Sonoco reported a third-quarter 2026 GAAP net loss of USD 732m after a USD 829m non-cash goodwill impairment on its Consumer Packaging EMEA/APAC and Industrial Paper Packaging APAC businesses, against net income of USD 123m a year earlier. Net sales fell 4.2% to USD 2.04bn, mainly because of the ThermoSafe divestiture, while Consumer volume/mix dropped 3% as drought hit food can demand and cost inflation exceeded expectations. Adjusted net income was USD 167m, down from USD 191m; Sonoco cut total debt by USD 162m, refinanced a USD 800m term loan and revised its full-year 2026 guidance.
Why this mattersThe writedown on international consumer units and a 3% Consumer volume decline contrast with 94% URB mill utilisation, leaving industrial paper as Sonoco's steadier earnings base.
- Goodwill impairment of USD 829m: USD 802m on Consumer Packaging EMEA/APAC and USD 27m on Industrial Paper Packaging APAC.
- Q3 2026 GAAP net loss was USD 732m (USD 7.36 per diluted share), against net income of USD 123m (USD 1.23) a year earlier.
- Net sales fell 4.2% to USD 2.04bn, mainly due to the November 2025 ThermoSafe divestiture; flat excluding divestitures.
- Adjusted net income was USD 167m (USD 1.67 per share), down from USD 191m (USD 1.92).
- Consumer volume/mix fell 3%; North America URB trade ton sales rose 10% with mill utilisation at 94%.
- Q3 operating cash flow was USD 285m; total debt fell USD 162m to USD 4.29bn and a USD 800m term loan was refinanced.
- Full-year 2026 guidance cut to adjusted EBITDA of USD 1.20bn-1.25bn and adjusted EPS of USD 5.30-5.50
- Industrial Paper Packaging sales rose 5.2% to USD 646m but operating profit fell to USD 88m from USD 94m
China's PET spot price stood at CNY 9,046.67 per tonne (USD 1,354.70) on 12 October 2026, 43% above its 2026 low of CNY 6,322.5 (USD 946.8), and beverage brands including Genki Forest, Wahaha, China Resources C'estbon and Eastroc have raised factory-gate prices. Bottle-chip producers have been the main beneficiaries: Wankai New Materials' first-half net profit rose 910% to CNY 562m (USD 84m) as its bottle-grade PET gross margin rose to 9.64% from 3.18%, and China Resources Materials and ST Sanfangxiang also swung to profit.
Why this mattersA sustained PET cost shock shifts pricing power toward resin producers such as Wankai and squeezes margins for beverage and food-service packaging buyers.
- China PET spot price was CNY 9,046.67/tonne (USD 1,354.70) on 12 October 2026, up 43% from a 2026 low of CNY 6,322.5/tonne (USD 946.8)
- Genki Forest, Wahaha, China Resources C'estbon and Eastroc Beverage have raised factory-gate prices; PET is close to 80% of a drinks bottle's production cost
- Wankai New Materials' first-half net profit rose 910% year on year to CNY 562m (USD 84m)
- Wankai's bottle-grade PET gross margin rose from 3.18% to 9.64%
- China Resources Materials posted first-half net profit of CNY 253m (USD 38m), against a CNY 121m (USD 18m) loss a year earlier
- ST Sanfangxiang reported attributable net profit of CNY 4.93m (USD 0.74m), against a CNY 262m (USD 39m) loss a year earlier
China's State Administration for Market Regulation has approved GB/T 24322-2026, a revised national standard for sulphate bamboo pulp that replaces the 2009 bleached-only version. The update adds a new category and test methods for unbleached (natural) sulphate bamboo pulp, tightens safety limits on fluorescent brighteners and heavy metals, and takes effect on 1 April 2027.
Why this mattersBamboo pulp is a key input for tissue and moulded-pulp fibre packaging, so tighter purity and safety limits could affect sourcing and cost for producers using the material.
- Standard GB/T 24322-2026 replaces GB/T 24322-2009, which covered only bleached sulphate bamboo pulp.
- The revision adds a separate category and technical requirements for unbleached sulphate bamboo pulp.
- New safety indicators cover migratable fluorescent substances and heavy metals.
- Tear index requirements for bleached pulp are tightened and the D65 brightness indicator adjusted.
- Dust measurement threshold area is changed to 0.15mm2 with updated requirements for the 0.15-0.99mm2 range.
- The standard enters into force on 1 April 2027.
The European Commission has selected 77 industrial projects across 23 EEA countries as candidates for Innovation Fund grants worth up to EUR 3.4bn, funded from Emissions Trading System revenues. The list includes chemical recycling plants in Spain and the Netherlands, a biopolymer facility in Germany and a PHA pilot in Finland. Promoters now begin grant negotiations with CINEA, with outcomes due in the first quarter of 2027 and a new call round opening in December 2026.
Why this mattersA multi-country funding push for chemical recycling and bio-based alternatives could expand feedstock options for packaging resin producers facing recycled-content mandates.
- European Commission selected 77 projects across 23 EEA countries for up to EUR 3.4bn in Innovation Fund support.
- Greenertis Tarragona in Spain proposes the Circus project to convert mixed plastic waste into pyrolysis oil using molten-salt and electrically heated reactors.
- PTC Amsterdam in the Netherlands proposes the Plastic project, combining slow-cracking pyrolysis with in-line decontamination to produce feedstock oil.
- Traceless Materials in Germany plans an industrial plant under the Beyond project, following a first Hamburg-Harburg facility opened in May 2026 with about 3,000 tonnes annual capacity after an investment of more than EUR 20m.
- NG Nordic Finland proposes the Eagle pilot to capture about 10,000 tonnes of CO2 a year from a waste-to-energy plant for use in producing polyhydroxyalkanoates.
- Grant agreements are to be negotiated with CINEA, with outcomes expected in the first quarter of 2027, and a new Innovation Fund call round opens in December 2026.
German waste management associations BDE and bvse, together with paper industry body Die Papierindustrie (DPI), have called on the German government for a binding, uniform regulation ending the waste status of recovered paper once it is sorted to DIN EN 643 quality standards. The groups, joined by Austrian bodies Austropapier and VOEB, are also commissioning a study by Vienna's Boku university to develop a method for measuring contaminants in mixed waste paper, to support a legally secure end-of-waste framework initially in Germany and eventually across Europe.
Why this mattersA binding end-of-waste status would ease recovered fibre trading and supply for European paper and packaging mills, reducing regulatory uncertainty in a key raw material stream.
- BDE, bvse and Die Papierindustrie (DPI) jointly call for a binding end-of-waste rule for recovered paper in Germany, with a longer-term aim of EU-wide application
- Waste paper would gain product status once separately collected, sorted by certified disposal firms and quality-assured to DIN EN 643 grade definitions for groups 1 to 4
- Austrian associations Austropapier and VOEB join the German groups in commissioning an accompanying study
- The research project at the University of Natural Resources and Life Sciences Vienna (Boku) will develop a standardised method to quantify contaminants in mixed waste paper
- The study will include analysis of existing standards, development of sampling and analysis strategies, and practical testing at model facilities
The European Commission has proposed returning 26 Swedish pulp, paper and cardboard installations to the EU Emissions Trading System from January 2027, with no free allowances granted. The move follows a request from the Swedish government and would require the affected plants to buy all their carbon allowances on the open market. The proposal comes amid a wider EU ETS reform debate over free-allowance rules and use of carbon market revenue.
Why this mattersFull carbon-cost exposure for Swedish pulp and paper producers raises compliance costs and could widen the competitiveness gap with mills still receiving free allowances.
- 26 Swedish pulp, paper and cardboard installations affected
- Proposed re-entry into the EU ETS from January 2027
- No free allowances to be granted to the installations
- Proposal made at the request of the Swedish government
- EU member states had separately proposed a 40% increase in free ETS allowances under the fallback benchmark
Nepa Limited has halted newsprint production at its mill in Nepanagar, Madhya Pradesh, after running out of coal, although both paper machines, with combined capacity of 100,000 tonnes a year, are in working order. The mill, with accumulated losses of about USD 111m (INR 1,055 crore), is seeking waivers of a USD 26m (INR 247 crore) government loan and USD 45m (INR 427 crore) of accrued interest, and is in talks with the Ministry of Coal and coal producers to restore supply.
Why this mattersNewsprint Nepa cannot make is met from imports, which already cover about 60% of Indian demand.
- Both paper machines at Nepa Limited's Nepanagar mill are operational but idle for lack of coal, with combined capacity of 100,000 tonnes of newsprint a year
- Accumulated losses stand at about USD 111m (INR 1,055 crore)
- Management is seeking waivers of USD 26m (INR 247 crore) in government loan principal and USD 45m (INR 427 crore) in accrued interest
- The mill pays about USD 6m (INR 57 crore) in annual interest against profit of less than USD 2.6m (INR 25 crore) a year
- The Nepanagar municipal council owes the mill about USD 1.1m (INR 10 crore)
- India imports roughly 60 percent of its newsprint requirement
LyondellBasell stopped its PP2 polypropylene unit at Brindisi, Italy, on 17 October 2026, ten weeks before the closure deadline set in June 2026. The line was the last polypropylene unit at the site and was fed with propylene shipped by sea from Priolo in Sicily, which now loses that outlet. The stoppage was announced by a regional union official, not by LyondellBasell.
Why this mattersThe closure cuts European polypropylene capacity and leaves Priolo's propylene without its established downstream buyer, pressuring the feedstock chain.
- LyondellBasell's PP2 polypropylene line at Brindisi stopped on the morning of Saturday, 17 October 2026
- The shutdown came ten weeks before the deadline set in June 2026
- The line was the last polypropylene unit running at the Brindisi site
- Propylene feedstock for the line had been supplied by sea from Priolo, Sicily
- The closure was disclosed by Antonio Frattini, general secretary of Filctem CGIL Puglia, not by LyondellBasell
Zhejiang COMY Environmental Technology started a pilot plant on 16 October 2026 in Cangzhou, Hebei Province, China, applying its patented Plastic-to-Propylene chemical recycling technology to mixed plastic waste. The facility, at the Yanzhao Green Chemistry Laboratory, tests a distributed-plus-central ('N+1') process model and is intended as a step toward commercial-scale deployment.
Why this mattersA working chemical-recycling route to high-purity propylene could supply recycled feedstock for polypropylene packaging as recycled-content mandates such as PPWR tighten from 2030.
- Pilot plant launched 16 October 2026 in Cangzhou, Hebei Province, China.
- Technology uses selective catalytic cracking and olefin recombination to convert mixed, contaminated plastic waste into high-purity propylene.
- Process avoids intensive washing required by mechanical recycling.
- N+1 model pairs distributed pre-treatment plants (pyrolysis to intermediate oils) with a central processing plant producing propylene.
- COMY plans to verify commercial-scale performance before expanding capacity and the model to other markets.
- EU PPWR sets minimum recycled-content requirements for plastic packaging from 2030; UK plastic packaging tax applies below 30% recycled content, with mass-balance chemical recycling allowed from April 2027.
The Navigator Company has launched a programme to mobilise up to EUR 84m (USD 94.5m) in incentives for 124 partners of its Navigator Forest Producers Club. The scheme, called Rede de Fornecedores Inovadores, is run with AGROGES under Portugal's EU-funded Portugal 2030 and COMPETE 2030 programmes and offers grants of up to 50% of eligible investment in machinery, technology and digitalisation for wood suppliers, forestry service providers and hauliers in Navigator's supply chain.
Why this mattersCo-funding suppliers' machinery, technology and haulage upgrades ties Portuguese wood supply more closely to Navigator, supporting feedstock security for its pulp and paper operations.
- Programme can mobilise up to EUR 84m (USD 94.5m) for 124 partners of the Navigator Forest Producers Club
- Grants can cover up to 50% of eligible investment
- Base aid rates of 40% for micro/small firms and 30% for medium firms under the Sistema de Incentivos à Inovação Produtiva
- A further 10 percentage point bonus applies for closer ties with Navigator, plus up to 10 points more in some sub-regions
- Run with AGROGES under Portugal 2030 and COMPETE 2030, with preferential financing via Crédito Agrícola and insurance terms via Empremédia
- Navigator reported 2025 turnover of EUR 1,970m (USD 2,217m)
UPM has inaugurated its biorefinery at Leuna, Germany, an investment of EUR 1.37bn (USD 1.54bn) with annual production capacity of 220,000 tonnes. The plant uses enzymatic hydrolysis to turn beechwood thinnings and sawmill residues sourced within about 200km into industrial sugars and lignin, feedstock for chemicals used in packaging, clothing, cosmetics, construction materials and tyres. Hydrolysis and lignin-based speciality chemicals have reached stable operation, and UPM is raising sales as the wider ramp-up continues.
Why this mattersA 220,000-tonne wood-to-chemicals plant gives packaging and other manufacturers fossil-free sugar and lignin feedstock at industrial scale, drawn from regional beechwood thinnings and sawmill residues.
- Investment of EUR 1.37bn (USD 1.54bn) at the Leuna site in Germany
- Annual production capacity of 220,000 tonnes of wood-based biochemicals
- Feedstock is beechwood forest thinnings and sawmill residues sourced within about 200km
- Enzymatic hydrolysis and lignin-derived specialty chemical production have reached stable operation
- Output can replace fossil-based inputs in packaging, clothing, cosmetics, construction and tyres
- UPM also runs a biorefinery in Lappeenranta, Finland
- UPM states all processes at the Leuna biorefinery have reached stable operation as of 20 October 2026
Singapore's National Environment Agency issued preventive measure notices on 16 October 2026 under the Transboundary Haze Pollution Act to seven Sumatra-based companies over land and forest fires; three are wood suppliers to Asia Pulp & Paper, part of Sinar Mas Group. The notices require the firms to put out fires, stop any burning and submit fire-prevention plans; a lawyer quoted in coverage noted they do not establish a breach of the law. APP said it has contacted the suppliers and will support their full cooperation with the agency.
Why this mattersUpstream fire enforcement against Asia Pulp & Paper's wood suppliers renews cross-border regulatory and reputational pressure on Sinar Mas Group's fibre supply chain.
- Singapore's National Environment Agency issued preventive measure notices on 16 October 2026 to seven Sumatra-based companies under the Transboundary Haze Pollution Act
- Three of the seven, PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT SBA Wood Industries, supply wood to Asia Pulp & Paper, part of Sinar Mas Group
- PT Bumi Andalas Permai's plantation covers about 190,415 hectares and PT Bumi Mekar Hijau's about 249,650 hectares, both in Ogan Komering Ilir Regency
- The same three received similar notices over the 2015 haze, and investigations from that episode are still ongoing
- APP said its supply partners must follow a zero-burning policy and that it will support the suppliers' cooperation with the agency
- Singapore's 24-hour PSI was forecast at 150 to 230 on 17 October 2026
- The Singapore Environment Council issued Asia Pulp & Paper a notice of temporary SGLS+ certification restrictions on 18 October 2026.
- APP must submit daily fire response reports for concessions held by PT Bumi Mekar Hijau, PT Bumi Andalas Permai and PT SBA Wood Industries.
- A further three Indonesian firms were served Preventive Measure Notices on 19 October 2026, bringing the total to ten.
- The SEC may suspend APP's SGLS+ certificate if fire prevention and monitoring are not demonstrated as effective.
- NEA issued notices under the Transboundary Haze Pollution Act to 10 Indonesian plantation firms on 20 October 2026, four confirmed as Asia Pulp & Paper suppliers and a fifth possibly linked.
- Three of the ten firms are repeat offenders also notified over the 2015 haze episode.
- Fines under the Act can reach SGD 100,000 a day, capped at SGD 2m per case.
- Asia Pulp & Paper says it has invested USD 300m in fire management since 2015 and maintains a zero-burning policy.
- NEA issued notices under Section 10 of the Transboundary Haze Pollution Act to 10 Singapore-registered companies on 23 October 2026, including Asia Pulp & Paper Company Limited and Asia Pulp & Paper Company (China) Limited.
- NEA separately issued Section 9 Preventive Measure Notices to 10 Indonesian companies: 7 in Sumatra (16 October) and 3 in Kalimantan (19 October) over fires.
- The notices request corporate-link details, concession locations and fire-prevention and firefighting measures.
- Asia Pulp & Paper confirmed receipt of the notices and said it is cooperating with authorities.
Suzano says it is not yet ready to merge its own consumer-goods operations with Arbex, the tissue joint venture it formed with Kimberly-Clark covering 22 plants in 14 countries. Executive vice-president Pablo Machado said a merger could be considered once Suzano judges its own tissue business has matured and Arbex has captured its planned efficiency gains. The group is targeting USD 175m in operational efficiency at Arbex over three years.
Why this mattersA future combination would consolidate Suzano's downstream tissue footprint with Kimberly-Clark's international hygiene assets, deepening its shift beyond pulp.
- Arbex, the Suzano-Kimberly-Clark joint venture, comprises 22 industrial units across 14 countries making and selling hygiene paper products.
- Suzano is targeting USD 175m in operational efficiency gains at Arbex over three years, a goal stated earlier in 2026 by CEO Beto Abreu.
- Suzano acquired Kimberly-Clark's Brazilian tissue operations in 2023, including the Neve brand and the Mogi das Cruzes mill with 130,000 tonnes a year of semi-finished paper capacity.
- Suzano says it cut costs at the Mogi das Cruzes plant by around 40% within six months of taking it over.
- Executive vice-president Pablo Machado said Suzano does not currently see merit in combining operations, citing unrealised gains still to be captured at Arbex.
- Suzano said on 21 October 2026 it will report Consumer Goods as a segment separate from Pulp & Paper from Q3 2026 onward
- The change follows the creation of Arbex and introduces a new methodology allocating pulp costs consumed by the Consumer Goods unit
- Historical data from Q1 2025 to Q2 2026 will be restated pro forma, with no impact on previously reported consolidated results
- Suzano is changing the methodology for costing pulp consumed by the Consumer Goods unit
- Suzano will restate pro-forma quarterly segment data from Q1 2025 to Q2 2026 to preserve comparability
- Suzano says the segment-reporting changes do not alter previously reported consolidated results
Chinese paperboard producer Liansheng Pulp & Paper is raising prices across its kraft linerboard and corrugating medium grades by CNY 50/tonne (USD 7/tonne) in a staggered rollout from 15 to 18 October 2026. The company cites higher raw material and chemical additive costs as the reason. Market commentary tied to the announcement expects the move to support a firmer domestic containerboard spot market.
Why this mattersA price rise from a leading domestic mill signals tightening Chinese containerboard supply-cost conditions that can ripple into regional export pricing for converters.
- High-strength corrugating medium price rises CNY 50/tonne (USD 7/tonne) from 15 October 2026
- A3-grade and T-grade kraft linerboard rise CNY 50/tonne (USD 7/tonne) from 17 October 2026
- A-grade and A2-grade kraft linerboard rise CNY 50/tonne (USD 7/tonne) from 18 October 2026
- Company cites raw material and chemical additive cost increases as the driver
- Final prices subject to the company's official quotation sheet
Ganesha Ecopet Private Limited, the wholly owned recycling subsidiary of India's Ganesha Ecosphere, has received Food Safety and Standards Authority of India authorisation for a fourth recycled PET production line at its Warangal, Telangana plant. The approval, dated 15 October 2026 and valid for two years, permits manufacture of food-contact-grade rPET using Starlinger recoSTAR PET technology, opening access to higher-value food-packaging end-uses.
Why this mattersFood-grade certification lets the recycler sell into higher-value food-contact rPET demand that India's extended producer responsibility rules are pushing packaging buyers toward.
- FSSAI authorisation granted 15 October 2026 for Ganesha Ecopet's fourth rPET production line
- Line is sited at Kakatiya Mega Textile Park, Warangal, Telangana
- Process uses Starlinger recoSTAR PET technology
- Authorisation covers food-contact-material grade rPET (FCM-rPET)
- Validity runs two years, from 15 October 2026 to 14 October 2028
- Disclosed to NSE and BSE on 16 October 2026 under SEBI Regulation 30
The US Commerce Department has issued a final antidumping determination on high purity dissolving pulp from Brazil, setting a 6.40% cash deposit rate for Bracell and other Brazilian exporters effective from publication on 16 October 2026. A parallel countervailing duty case set a 9.37% subsidy rate, not yet collected pending an ITC injury ruling due within 45 days. Rayonier Advanced Materials and the United Steelworkers filed the original petitions in August 2025.
Why this mattersA cumulative deposit near 15.77% if the subsidy order follows would raise landed costs for Brazilian dissolving pulp and support US domestic producers such as Rayonier Advanced Materials.
- Commerce set a 6.40% antidumping cash deposit on Brazilian high purity dissolving pulp, effective with publication on 16 October 2026
- The underlying dumping margin is 6.50% for Bracell and all other Brazilian exporters
- A parallel countervailing duty case set a 9.37% subsidy rate, not currently collected pending an ITC injury finding
- A companion case set a 6.51% antidumping rate for dissolving pulp from Norway
- Rayonier Advanced Materials and the United Steelworkers filed the petitions in August 2025
- The ITC held its final hearing on 8 October 2026 and must rule within 45 days of Commerce's decision
A waste-paper recycling mill is under construction in Aktobe, Kazakhstan, with investment of about KZT 10bn. It is designed to produce up to 18,000 tonnes of corrugating paper and up to 24,000 tonnes of board a year, with start-up planned for 2027 and more than 300 jobs. The boiler house is built and foundation, piling and warehouse work is under way; the operator is not named in the report.
Why this mattersNew recycled-fibre capacity in Kazakhstan gives local box makers a domestic source of corrugating paper and board.
- Investment of about KZT 10bn in the plant
- Planned output of up to 18,000 tonnes of corrugating paper a year
- Planned output of up to 24,000 tonnes of board a year
- Start-up planned for 2027
- More than 300 jobs expected in the region
- Boiler house built; foundation, piling and warehouse construction under way
- Kazakhstan collected 119,900 tonnes of waste paper, cardboard and paper waste in 2023, with paper and cardboard reaching 9.4% of sorted municipal waste in 2025
- A comparable Kostanay-region plant, costing KZT 6.9bn and due to start in Q4 2026, will process up to 15,000 tonnes of waste paper and 2,300 tonnes of Tetra Pak packaging a year once at full capacity
Mondi's underlying EBITDA rose to EUR 196m in the third quarter of 2026 from EUR 167m in the second quarter, which included a EUR 43m forestry fair-value loss, as earlier price increases offset planned maintenance shutdowns and faster-than-expected input-cost inflation. Gas averaged EUR 63/MWh, up 35-40% sequentially, adding roughly EUR 20-25m to quarterly costs; Mondi does not hedge energy. Management expects price increases to offset cost inflation in the fourth quarter at current spot prices, but says energy markets remain volatile.
Why this mattersWith 80-85% energy self-generated but no hedging, Mondi's margin hinges on whether paper price increases keep pace with gas; exposure is concentrated at Duino and Neusiedler.
- Underlying EBITDA was EUR 196m in Q3 2026, against EUR 167m in Q2 2026, which included a EUR 43m forestry fair-value loss.
- Gas averaged EUR 63/MWh in Q3 2026, up 35-40% sequentially; gas and other energy-related costs added about EUR 20-25m in the quarter.
- Mondi had guided to a EUR 35m rise in wood costs in H2 versus H1 2026, about half of it falling in Q3 versus Q2.
- Mondi generates about 80-85% of its own energy and does not hedge energy costs.
- Like-for-like volumes grew about 1% year on year against a largely flat European market.
- Mondi is transferring customer volumes from converting plants scheduled for closure later in 2026.
- Mondi sold one solid board converting plant and agreed to sell a second, with the second sale due to complete by end-September 2026.
- Underlying profit reached EUR 196m (USD 220.6m) in Q3 2026, up 17.4% quarter on quarter, partly reflecting the absence of Q2's forestry impairment.
- Shares fell as much as 8.8% in early trading after the results on continued input-cost pressure concerns.
- CEO Andrew King said further packaging paper price increases should support performance into the fourth quarter despite ongoing cost pressures.
- JPMorgan analysts said sequential fourth-quarter price gains from the increases would likely be minimal as energy costs keep rising.
- CEO Andrew King said higher packaging-paper prices are expected to support fourth-quarter performance
- Containerboard pricing allowed Corrugated Packaging to offset higher energy and wood costs
- Corrugated Solutions margins were hit by competitive pressure and a delayed paper-price recovery
Ganesha Ecopet, the recycling subsidiary of Ganesha Ecosphere, received FSSAI clearance on 15 October 2026 for its fourth food-grade recycled-PET line, at Warangal; the group's Indian recycling and washing capacity is now about 219,000 tonnes a year. India has roughly 17 FSSAI-approved food-grade rPET plants with combined capacity of about 300,000 tonnes a year, built on an estimated USD 948m-1.05bn (INR 9,000-10,000 crore) of investment, driven by an EPR rule requiring 40% recycled content in rigid plastic packaging in 2026-27. The constraint has shifted from plant capacity to supply of clean, sorted PET bottles.
Why this mattersA capacity build driven by regulation means Indian recyclers now compete for clean bottle feedstock and brand offtake rather than on plant investment, changing collection-chain economics.
- Ganesha Ecopet received FSSAI clearance on 15 October 2026 for a fourth food-grade rPET line at Warangal, Telangana, valid two years
- Ganesha Ecosphere's Indian recycling and washing capacity is now about 219,000 tonnes a year
- India has about 17 FSSAI-approved food-grade rPET plants with combined capacity of about 300,000 tonnes a year
- Capacity is projected to reach about 750,000 tonnes a year by March 2027
- Investment behind the capacity is estimated at USD 948m-1.05bn (INR 9,000-10,000 crore)
- India's EPR rule requires 40% recycled content in Category I rigid plastic packaging in 2026-27, rising to 60% by 2028-29, and excludes imported recycled content
Circulate Capital has made an undisclosed investment in PT Bumi Baru Plastik, an Indonesian recycler of polypropylene and polyethylene, to fund a fivefold increase in processing capacity. The company will consolidate production at a new industrial site in Jonggol, West Java, lifting output from pilot scale to 2,600 tonnes per month by the fourth quarter of 2027 in two phases. It is the sixth investment Circulate Capital has made in Indonesia.
Why this mattersAdds high-purity recycled PP and PE capacity in Indonesia aimed at automotive, electronics and packaging users, including bag-to-bag recycling of woven sacks.
- Circulate Capital has invested an undisclosed amount in PT Bumi Baru Plastik (BBP), founded in 2022.
- The investment is Circulate Capital's sixth in Indonesia.
- BBP will consolidate production at a new industrial site in Jonggol, West Java.
- Phase 1 raises capacity to 1,600 tonnes per month by February 2027.
- Phase 2 raises capacity to 2,600 tonnes per month by the fourth quarter of 2027, a fivefold increase overall.
- BBP supplies more than 50 plastics manufacturers and sources from a network of more than 400 collection partners.
- An executive described the Asian recycled polyolefins market as cost-driven.
Sylvamo, Sustana, Billerud and Sappi have introduced fuel or freight surcharges, citing higher diesel and transport costs. Sylvamo charges USD 20 per short ton from 1 October 2026, Sustana USD 20 per ton from 12 October, Billerud USD 25 per ton from 1 November and Sappi USD 25 per ton on graphic paper from 6 November. Coverage, effective-date rules and review mechanisms differ by supplier.
Why this mattersFour producers adding freight surcharges within weeks passes diesel costs through to paper and board buyers outside base-price negotiations.
- Sylvamo: USD 1 per hundredweight (USD 20 per short ton) on covered shipments from 1 October 2026, with orders acknowledged before 25 September exempt.
- Sustana: USD 20 per ton on all grades and formats shipped from 12 October 2026, reviewed weekly.
- Billerud: USD 25 per ton on paper and paperboard orders with confirmed delivery dates from 1 November 2026.
- Sappi: USD 25 per ton on graphic paper deliveries from 6 November 2026, covering McCoy, Opus, Somerset, Flo, Private Label, EuroArt and Galerie grades.
- Sylvamo, Billerud and Sappi tie surcharge review to diesel-price benchmarks.
- Kruger will add a USD 1/100lb (USD 20/short ton) transport surcharge from 1 November 2026, itemised separately on invoices.
- ND Paper will apply a USD 25/short ton surcharge on its Orion, Oxford and Pennacook grades from 13 November 2026, tied to the EIA On-Highway Diesel Price remaining below USD 4.66 for four consecutive weeks.
- ND Paper's USD 25-per-short-ton surcharge applies to all basis weights, finishes and grade extensions of its Orion, Oxford and Pennacook paper from 13 November 2026, covering existing and new orders
- Removal of ND Paper's surcharge requires the EIA On-Highway Diesel Price Index to stay below USD 4.66 for four consecutive weeks
- Garda will add USD 1.25 per hundredweight (USD 25 per short ton) to coated two-side paper invoices from 9 November 2026; orders acknowledged before 16 October keep prior pricing
From 1 April 2027, pre-consumer plastic waste will no longer count towards the 30% recycled-content threshold that determines liability under the UK Plastic Packaging Tax; only post-consumer recyclate will qualify. HM Revenue & Customs has also published draft regulations for mass balance accounting of chemically recycled plastic from the same date, subject to third-party certification. A technical consultation opened on 6 October 2026, and detailed guidance is due in early 2027.
Why this mattersManufacturers and importers relying on pre-consumer recyclate to stay under the tax threshold face higher costs unless they switch to post-consumer recycled plastic.
- Pre-consumer plastic waste loses qualifying status for the 30% recycled-content threshold from 1 April 2027.
- Only post-consumer recycled plastic, recovered after use by households and businesses, will count towards the threshold after the change.
- HMRC's technical consultation on the draft regulations launched on 6 October 2026.
- Mass balance accounting for chemically recycled plastic becomes optional from 1 April 2027, requiring third-party certification of the supply chain.
- UK manufacturers using mass balance must be certified; importers must verify supplier certification and retain evidence for six years.
- HMRC plans to publish more detailed guidance on the rules in early 2027.
Cepi, the European pulp and paper industry association, has urged the European Commission to strengthen carbon leakage protection in the 2026 reviews of the EU Emissions Trading System Directive and Market Stability Reserve Regulation. It warns that shrinking free allocation and the loss of biomass exemptions could cost the sector roughly EUR 1 billion (USD 1.12 billion) a year by 2030, and calls for revised benchmarks, removal of the biomass exclusion and continued compensation for indirect electricity costs.
Why this mattersA EUR 1bn annual carbon cost by 2030 would squeeze pulp and paper margins and could shift investment toward regions with lower carbon pricing.
- Cepi estimates a combined annual financial impact of roughly EUR 1bn by 2030 from the ETS changes.
- Ten of eleven sector product benchmarks face maximum reductions for 2026-2030.
- About 40 installations relying at least 95% on biomass would lose free allocation under current rules.
- Cepi wants 2021-2025 benchmarks retained for 2031-2040 and the 95% biomass exclusion removed.
- The association seeks a zero Market Stability Reserve intake rate and continued indirect carbon cost compensation.
- Cepi says the sector has cut emissions by more than 55% since 2005.
Canson and Engie have inaugurated a biomass boiler at Canson's paper mill in Saint-Marcel-lès-Annonay, France, designed to cover 89% of the plant's steam needs with renewable energy. The EUR 6m (USD 6.7m) project, contracted in autumn 2023 and commissioned over six months, will consume about 9,000 tonnes of biomass a year and is expected to avoid 50,715 tonnes of CO2 over its ten-year operating contract.
Why this mattersThe project cuts a specialty paper mill's natural gas dependence materially, a template other energy-intensive paper plants may follow to lower carbon and cost exposure.
- Biomass boiler has 5 MW thermal output and produces 31 GWh of heat a year
- Investment of nearly EUR 6m (USD 6.7m)
- Covers 89% of the mill's steam requirements with renewable energy
- Consumes about 9,000 tonnes of biomass annually, sourced within 100 km
- Expected to avoid 50,715 tonnes of CO2 over the ten-year operating and maintenance contract
- Contract signed in autumn 2023; existing 11 MW gas boiler remains as backup
Five EU member states have asked the European Commission to impose measures against PET imports, citing damage to domestic producers from a surge in shipments, according to lawyers cited in a report. The Commission has 30 days to decide whether to introduce safeguard measures or tariffs.
Why this mattersA safeguard duty on PET, the resin used in bottles and much rigid food and beverage packaging, could raise input costs for European converters and bottlers.
- Five EU member states filed the request with the European Commission.
- The request cites a surge in PET import shipments harming domestic producers.
- The Commission has 30 days from the request to decide on safeguard measures or tariffs.
Five EU member states have asked the European Commission to impose safeguard measures on PET imports, which would set country quotas and tariff or block out-of-quota volumes. The Commission has 30 days from the request to decide whether to open a formal investigation, adding to a wider wave of trade-defence actions in Europe's PET and chemicals sectors.
Why this mattersSafeguard quotas would raise PET resin costs and restrict supply for European bottle and packaging converters that depend on imported material.
- Five EU member states have asked the European Commission for PET safeguard measures, Reuters reported on 14 October 2026, citing EU trade lawyers.
- The European Commission has 30 days to decide whether to open a safeguard investigation.
- Proposed safeguards would set import quotas per exporting country, with out-of-quota PET volumes tariffed or blocked.
- The UK Trade Remedies Authority opened a separate PET safeguard investigation in August 2026 following an application from Alpek Polyester UK.
- Turkey (47,223 tonnes) and Vietnam (44,850 tonnes) were the EU's largest PET suppliers in July 2026, ahead of Egypt (12,519 tonnes) and Pakistan (12,475 tonnes).
- The EU terminated its antidumping investigation into Vietnamese PET in June 2026 after PET Europe withdrew its complaint.
The US Commerce Department has preliminarily set a 3.98% countervailing duty rate for SRF Limited, an Indian producer and exporter of PET film, sheet and strip, in its administrative review covering calendar year 2024. Commerce rescinded the review for nine other Indian companies, including Chiripal Poly Films and Cosmo First, and interested parties can comment before final results are published.
Why this mattersFinal countervailing rates will set the landed cost of Indian PET film for US converters and SRF's position against other suppliers in the US market.
- Commerce set a preliminary subsidy rate of 3.98% for SRF Limited.
- The review period runs from 1 January to 31 December 2024.
- The review was rescinded for nine other companies, including Chiripal Poly Films and Cosmo First.
- The preliminary results were published on 14 October 2026 under case C-533-825.
- Interested parties may comment before final results are issued.
