For the Quarter Ending December 2024
North America
The North American corrugated box market exhibited a mixed price trend during Q4 2024, with prices rising in the first half of the quarter before declining in the latter half. Early in the quarter, hurricane-related production disruptions tightened supply, driving up prices.
Emergency shutdowns and repair efforts at key facilities created temporary constraints, while rising kraft paper costs and freight expenses further amplified production costs. Seasonal demand from e-commerce, retail, and food packaging sectors provided additional upward pressure on prices, with robust holiday activity bolstering procurement needs. Anticipated tariff changes and potential East and Gulf Coast port strikes heightened logistical risks, though strategic inventory accumulation by retailers mitigated supply chain disruptions.
In the latter half of the quarter, prices began to decline as supply stabilized. Swift repairs at production facilities and increased imports helped normalize availability, while moderate demand growth tempered the upward momentum. Weakness in the renewable energy and mobility sectors, alongside balanced container port inventories, further dampened price trends. Despite seasonal peaks, the resilience of consumer and food packaging demand was insufficient to sustain price increases, leading to a modest decline in the latter half of the quarter.
Q4 2024 thus reflected a dynamic market, characterized by early price increases due to supply constraints and strong seasonal demand, followed by stabilization and a gradual decline as supply pressures eased.
APAC
The corrugated box market in the APAC region exhibited a mixed trend during Q4 2024, with prices remaining stable in the first half of the quarter before declining in the latter half. Early in the quarter, the market experienced steady price levels supported by balanced supply-demand dynamics. Seasonal demand from retail, e-commerce, and logistics sectors contributed to this stability, particularly as the holiday season and preparations for the Spring Festival drove robust packaging requirements. Despite logistical disruptions caused by Typhoon Kong-rey and operational cuts in East China, increased domestic pulp production and sufficient raw material inventories helped offset supply-side constraints.
However, the latter half of the quarter saw a decline in prices, driven by weaker external demand and mounting pressures from surplus capacity in the papermaking industry. Stabilized raw material costs, such as kraft paper and wood pulp, further reduced the scope for price increases. While downstream sectors like e-commerce and consumer goods continued to show strong activity, their impact was insufficient to sustain early-quarter price levels amid a challenging macroeconomic environment and declining global demand.
Overall, Q4 2024 presented a dynamic landscape for corrugated boxes in the APAC region, shaped by initial stability followed by a gradual downturn in market prices.
Europe
The European market for corrugated boxes in Q4 2024 exhibited a mixed trend, with prices declining in the first half before stabilizing towards the latter part of the quarter. Early in the quarter, prices faced downward pressure due to constrained demand from industrial sectors like automotive manufacturing, which remained sluggish amidst broader economic challenges. The underutilization of vendor capacity and global supply chain inefficiencies, such as port congestion and delays in the Red Sea and U.S. ports, exacerbated the decline in price momentum.
However, the situation shifted mid-quarter as localized resilience in the packaging sector provided support. Seasonal restocking of raw materials like soda ash, coupled with increased demand from the e-commerce and retail sectors during the holiday season, helped stabilize prices. Rising upstream costs, particularly for kraft paper and energy, also contributed to the stabilization. Additionally, the adoption of sustainable packaging solutions driven by regulatory shifts and consumer preferences provided incremental demand support, further preventing price erosion.
While the manufacturing landscape in Europe struggled with systemic inefficiencies and high compliance costs, the packaging sector showcased adaptability, supporting corrugated box prices towards the quarter’s end.
