BIR Warns of Extended Downturn in Global Recovered Paper Markets

SEATTLE (Scrap Monster): Global recovered fibre markets are likely to remain fragile without a sustained recovery in demand, particularly from the packaging sector, according to the latest BIR World Mirror publication from the Bureau of International Recycling’s Paper Division. The report highlights ongoing pressure across domestic and export channels, especially for lower-grade materials.

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In Europe, recovered paper markets faced persistent challenges in late 2025 due to weak containerboard demand, cautious buying behaviour, and shrinking export opportunities. China’s effective halt on imports of dry-ground recycled pulp further reduced indirect outlets, adding to oversupply at a time when new containerboard capacity and subdued operating rates were already weighing on the market.

Across Asia, tighter Chinese controls disrupted fibre flows, pushing imported OCC prices sharply lower and creating a prolonged buyer’s market. Demand in India remained limited by soft box consumption and currency depreciation, while Turkey served mainly as a pressure-release outlet.

In the United States, weak consumer spending, mill closures totaling nearly four million tons of annual capacity, and rising processing costs have squeezed recycler margins, driving down prices for OCC and mixed paper. Despite near-term headwinds, a shift by major brands toward paper packaging offers longer-term optimism.