A Look Inside the Global Pulp & Paper Market: Q3 2025

The third quarter of 2025 delivered another wave of pivotal shifts across the global pulp and paper industry. From new trade dynamics in North America to tariff-driven disruption in Latin America, accelerated decline in Europe’s graphic paper segment, and escalating fiber security challenges in Asia-Pacific, the market continues to navigate rapid transformation.

While volatility remains a defining feature, Q3 also showcased significant investment activity, strategic consolidation, and meaningful steps toward modernization and sustainability. Below, we break down some of the trends shaping each region—and what they mean for the industry heading into Q4 and beyond.

North America: Trade Shifts & Corporate Restructuring

North America’s Q3 environment was shaped heavily by policy movement and trade realignments. Early traction in a potential US–EU trade agreement and the addition of wood pulp to the U.S. duty-free import list offered some relief to some downstream producers.

Yet uncertainty surrounding proposed U.S. tariffs on Brazilian eucalyptus pulp—critical for tissue production—created concern across the supply chain.

Still, investment momentum remained robust. Notably, Georgia-Pacific moved forward with an $800 million mill modernization, while Canada’s commitment of C$1.2 billion in sector support underscores the region’s determination to build a more competitive and technologically advanced future.

Latin America: Tariff Shockwaves & Strengthened Competition

Latin America faced significant turbulence in Q3 following the U.S. announcement of 50% export duties on several Brazilian wood-industry products. These tariffs reshaped regional trade dynamics and triggered a shift in commercial partnerships.

Competitive pressure intensified further as low-cost Chinese paper and packaging flooded the market, tightening margins and elevating pricing pressure.

Yet, despite volatility, Latin America strengthened its role as a global growth engine. With capacity additions exceeding 3% annually, the region continues to lead global expansion in pulp, containerboard, and tissue.

Europe: Graphic Paper Decline & Regulatory Pressures

Q3 intensified Europe’s long-running challenges. Demand for graphic papers fell another 10%, with operating rates hovering at ~65%, reflecting severe structural decline.

Several mills accelerated shutdowns or conversions, including UPM Kaukas (Finland), Kabel (Germany), and Heinzel’s operations in Austria. Sappi’s Alfeld mill announced multiple closures, and International Paper confirmed site closures impacting roughly 500 jobs.

To add to the complexity, the EU extended EUDR compliance deadlines by one year—with large companies now facing a deadline of December 2026—yet much preparatory work remains.

Asia-Pacific: Fiber Security & Tightened Policy Controls

Asia-Pacific saw moderate recovery in Q3. Hardwood pulp prices rose 3–5% from Q2, and packaging demand surged across Southeast Asia thanks to e-commerce and FMCG activity. However, printing and writing grades continued their downward trajectory.

The most consequential shift came from China’s tightening of recycled pulp import regulations:

• New contamination and traceability requirements cut imports by 12–15% quarter-over-quarter.

• The country’s long-standing structural fiber deficit deepened considerably.

Smaller mills felt the sharpest impact, while larger players accelerated digitalization and yield-optimization to absorb rising costs from chemicals, energy, and logistics (exacerbated by Red Sea disruptions).

Diving Deeper

Across all regions, Q3 highlighted an industry in active transition—grappling with cost inflation, regulatory demands, and shifting trade patterns, while simultaneously investing in modernization, sustainability, and supply-chain resilience. This duality—pressure and progress—defines the current global landscape.

To explore deeper regional data, pricing insights, and expert analysis, download the full Q3 2025 Pulp & Paper Market Overview Report.