MARKET DYNAMICS

NORTH AMERICA

As of March 4, 2025, a 25% tariff is now applicable to all products of Mexico and Canada imported into the U.S. and 20% on all goods from mainland China.  These countries are key destinations for US PE resin exports in 2024.

Increased Costs: Tariffs will raise the cost of importing PE and plastic packaging materials, likely leading to higher prices for end products, affecting both manufacturers and consumers.

Supply Chain Disruptions: Companies relying on imports from these countries may face disruptions and need to seek alternative suppliers or adjust production processes.

Shift in Sourcing: Some companies may shift sourcing to domestic suppliers or other countries unaffected by the tariffs, increasing demand for locally produced PE and plastic packaging materials.

ASIA

The plastic packaging industry faces challenges due to the economic downturn, environmental protection policies, and market competition.

Growth Drivers: Despite challenges, the industry is driven by e-commerce development and technological innovation, moving towards environmental friendliness, high performance, intelligence, and high-end products.

Market Prospects: The market has broad prospects, but differentiation and integration within the industry may increase.

EUROPE

Regulatory Changes: On January 22, 2025, the European Council adopted the Packaging and Packaging Waste Regulation (PPWR), to be fully implemented by August 12, 2026.

Compliance Preparation: Enterprises must prepare for compliance in 2025, including increased R&D and investment in recycled plastics and packaging design and establishing efficient recycling systems.

Large Enterprises: Companies like Amcor and Berry Global will leverage their advantages to invest in environmentally friendly materials and new production technologies, expanding market share and leading sustainable development.

SMEs: Small and medium-sized enterprises may face significant cost pressures and challenges in technological upgrading.

PROCESS OVERVIEW

Film/Sheet Extrusion:  Polyethylene pellets are melted and extruded through a die to create thin films or sheets.  The extruded material is then cooled and solidified and wound onto rolls or slit into desired widths for flexible packaging.

Molding: Various molding techniques shape Molten polyethylene into rigid containers.  Injection molding creates 3D shapes, blow molding forms hollow containers, and thermoforming shapes heated sheets over molds.

Printing & Decoration (Optional):  Packaging can be printed with graphics, text, or barcodes for branding and information.  Labels may also be applied for product identification and other purposes.

Converting & Fabrication:  Films and sheets are converted into final packaging forms.  This includes bag making, pouch making, and carton fabrication using sealing, sewing, folding, and cutting techniques.

Filling & Sealing:  The finished packaging is filled with the product, either manually or automatically.  The packaging is then sealed to contain the product using heat sealing, adhesives, or mechanical closures.

Quality Control:  Materials and packaging are tested throughout the process to ensure quality.  This includes incoming resin testing, in-process checks, and final product inspections for defects and proper sealing.

Packaging & Distribution:  Packaged goods are packed into larger cartons or pallets for efficient shipping.  The packaged products are then distributed to retailers or directly to consumers.

RECENT DEVELOPMENTS

Month & Year	LDPE/HDPE Manufacturer (Company 1)	End User (Company 2)	Development Type	Description	Deal Value
Jan-25	LyondellBasell (Netherlands)	Indian Oil Corporation	Contract	LyondellBasell (LYB) announced that Indian Oil Corporation Ltd. (IOCL) has selected its Hostalen Advanced Cascade Process (Hostalen ACP) technology for a new 500 kiloton per year (kta) high-density polyethylene (HDPE) facility in Paradip, India.	-
Dec-24	Amcor (Switzerland)	Berry Global Group (US)	Acquisition	Amcor will acquire Berry Global in an $8.4 billion all-stock deal that is expected to close in mid-2025, marking a continuing trend of consolidation in the packaging industry. The combination of the two packaging giants will strengthen their positioning in “high-growth, high-value categories,” according to a press release. From largest to smallest, those segments include health care, protein, pet food, liquids, beauty and personal care, and food service.	$ 8.4 Bn
Dec-24	Amcor (Switzerland)	-	Product Development & Launch	Amcor, a global leader in developing and producing responsible packaging solutions, has announced the launch of the next generation of its Medical Laminates solutions. Amcor’s latest innovation enables the development of all-film packaging recyclable in the polyethylene stream. The new solution reduces the carbon footprint of the final package while maintaining the performance requirements of device applications, helping medical companies to progress their sustainability goals without compromising patient safety.	-
Aug-24	LyondellBasell (Netherlands)	APK AG (Germany)	Acquisition	LyondellBasell (LYB) announced an agreement to acquire full ownership of APK AG in Merseburg, Germany. Enabled by its technology, the acquisition positions LYB to grow and upgrade its Circular and Low Carbon Solutions business. The recycling technology is a unique solvent-based kind for low density polyethylene (LDPE). LYB aims to increase the recycling of hard-to-recycle flexible plastic waste materials – which today make up most of the mixed plastic waste from the consumer sector.	-
Jun-24	Berry Global Group (US)	-	Product Development & Launch	Berry Global Group is distributing a customizable, rectangular HDPE bottle solution for the beauty, home, and personal care sectors, available with up to 100% post-consumer recycled plastic.	-

Source: Press releases & company websites

DEMAND/SUPPLY OVERVIEW 

DEMAND COMMENTARY

The overall demand for global PE packaging is expected to maintain steady growth in 2025 and the following years.

North America

• Market Growth: The plastic packaging film market is expected to reach 3.88 million tons in 2025 and 4.45 million tons by 2030, with a compound annual growth rate (CAGR) of 2.81%.  PE, the primary material for plastic packaging films, packaging materials will also exhibit a growth trend.
• Environmental Trends: Advancements in environmental protection technologies and developments in recyclable and biodegradable PE packaging materials are progressing.  Increased consumer acceptance of environmentally friendly packaging will drive more enterprises to adopt these materials, boosting demand.

Asia

• Long-term Growth:  Driven by consumption upgrades and improved living standards, industries such as food, beverage, and daily chemicals have a continuously growing demand for high-quality and environmentally friendly PE packaging, including high-end food packaging and personalized daily chemical packaging.
• E-commerce Logistics: The rapid development of e-commerce is increasing the demand for PE packaging in logistics, which is used for product transportation and cushioning.
• Pharmaceutical Industry: The pharmaceutical market's growth requires higher sterility and moisture-proof performance in PE packaging materials, increasing demand.
• Economic Downturn: The current economic downturn limits the surge in overall demand for the PE packaging industry, with a slow recovery in manufacturing and pessimistic societal expectations.
• India - Population and Industry Growth:  In 2025, the demand for PE packaging in India will increase with the development of its population, labor force, and industry.  The large and young population drives strong demand in consumer markets for food and daily necessities, including food packaging bags and plastic bottles.  Manufacturing Sector:  The growth of India's manufacturing industry boosts demand for PE packaging in industrial sectors like automotive and electronics for product protection and transportation.

Europe

• Stable Demand: The demand for PE packaging is relatively stable but weak, influenced by environmental policies and industry developments.
• Regulatory Impact: Regulations restrict single-use plastic packaging, but there is still demand for reusable and recyclable PE packaging materials that meet relevant regulations.
• Sustainable Development: Increasing requirements for sustainable development drive the growth of demand for environmentally friendly PE packaging materials.

SUPPLY ANALYSIS

North America

• Mature Industry Base: North America is a key global PE production hub with a mature chemical industry base.  Chemical giants like Dow Chemical and ExxonMobil have large-scale production facilities and have been expanding capacity and upgrading technology, ensuring a stable supply.
• Major Suppliers: Companies such as Berry, Silgan, and Alpla provide several types of PE plastic packaging across multiple fields, with strong production capacity and sufficient supply from multiple production bases.

Asia

• China:  The continuous upgrading of the domestic consumer market and industrial structure adjustments will prompt domestic suppliers to increase their supply of PE plastic packaging.
• India:  The development of local manufacturing and consumer markets, especially in the food and daily necessities sectors, will drive the production of PE plastic packaging.
• Southeast Asia: The growth of local industries and trade, along with foreign investments in local factories, will increase the supply capacity of PE plastic packaging.

Europe

• Increased Capacity: The commissioning of new PE plants by large chemical companies and plastic packaging manufacturers like LyondellBasell will boost PE plastic packaging products’ overall production capacity and output.
• Environmental Policies: Strict protection policies in Europe require companies to improve the recycling rate of plastic packaging.  This prompts increased investment in recyclable and degradable PE plastic packaging products, helping to integrate resources, increase industry concentration, and optimize the market supply structure.

PRICING SITUATION

NORTH AMERICA

The PE plastic packaging material prices in NA are stable, with a slight increase.  Regarding raw material costs, 2025 January contract prices for all PE grades in North America were reported settled with a five cpp increase.  In January, at least six PE resin producers announced 7 cpp price increases for all grades.  For February, producers have sent letters announcing an additional 5 cpp increase.

In the Mexican polyethylene resin market, prices rose in January, and the market is bracing for further increases in February.  Major local producers have also announced and implemented local market adjustments.  The expected increase in raw material prices will likely increase PE plastic packaging prices.

ASIA

China:  The abundant supply of PE plastic packaging may exert downward pressure on prices.  Crude oil prices are expected to remain stable, supporting costs and preventing significant price drops.  In February, demand weakened as downstream factories resumed production after the Spring Festival, making it challenging to support prices strongly.  New production capacities like those from Yulong Petrochemical and Baofeng Energy have increased PE production and provided a sufficient market supply.

India:  The price of PE plastic packaging in 2025 is expected to remain stable or increase slightly, driven by material prices, supply, and market demand.

EUROPE

The price trend of PE plastic packaging materials in 2025 may be weak overall.  January 2025 domestic polyethylene contract prices edged nominally higher as sellers tried to boost margins.  Though shipping bottlenecks eased, spot prices increased as sellers sought higher netbacks.  Demand was low due to macroeconomic and seasonal headwinds, while supply was long.

MARKET DYNAMICS

In North America, February and March are the off-season for beverages and other products.  The demand for PET plastic packaging materials has decreased, while the supply is relatively stable, which may lead to a certain degree of price decline.  In the future, changes in supply and demand, tariff policies, and other emergencies may lead to a reduction in supply.  For example, if manufacturers reduce production due to equipment failures and raw material supply problems, prices may rise even if demand is stable.

In Asia, PET packaging remains stable.  The crude oil and raw material markets showed a strong rebound trend, providing more solid support for the cost side of PET resin, which in turn pushed the center of gravity of the market price upward.  However, the recovery of terminal demand is still lagging, and there are many unstable factors in the external environment, which has led to the downstream industry being cautious about chasing the rise and not having a strong willingness.

European PET packaging in the food and drink segments will remain primarily muted, and the impact of inflation-related price increases has led to changes in consumers' shopping behaviours.  Almost all polymers have reported a significant reduction in packaging segment demand in 2024.  Looking back, 2024 has been a challenging year for the European PET and PET packaging industry.  In 2025, inflation-related effects will disappear, with consumers expected to increase food and drink spending.  There may be a light at the end of the tunnel.

PROCESS OVERVIEW

Preform Production (for bottles):  PET pellets are melted and injection-molded into preforms, which are test-tube-shaped bottle precursors. 

Bottle Blowing (for bottles):  Preforms are heated, stretched, and blown into molds to create the final bottle shapes. 

Sheet Extrusion (for thermoforming):  PET resin is extruded into sheets for thermoforming applications. 

Thermoforming (for trays, containers):  PET sheets are heated and formed over moulds to create trays and containers. 

Printing & Decoration (Optional):  Printing and labelling can be applied for brand recognition and information.

Filling & Sealing:  The PET packaging is filled with the product and sealed.

Quality Control:  Materials and packaging undergo testing to ensure quality. 

Packaging & Distribution:  Finished goods are packed for shipping and distributed to retailers or consumers.

RECENT DEVELOPMENTS

Date	PET Manufacturer	End User (Company 2)	Development Type	Description	Deal Value
Jan-25	Alpha Ecoplast (India)	Starlinger (Austria)	Business Development	Alpha Ecoplast: Indian recycler commissions new PET bottle-to-bottle line from Starlinger. In mid-October 2020, Alpha Ecoplast Pvt. Ltd., a member of the Alpha Group, commissioned a Starlinger "recoStar PET 215 HC iV+” PET bottle-to-bottle recycling line at the new plant near Kosamba in the state of Gujarat. The recoStar PET 215 HC iV+ is equipped with the largest single extruder from Starlinger and produces up to 2,700 kilograms of bottle-grade pellets per hour. The PET bottle-to-bottle recycling line is equipped with a pre-drying unit, high vacuum degassing, a continuous filter system and underwater pelletizing.	-
Oct-24	Avantium N.V. (Netherlands)	Plastipak Holdings (US)	Agreement	Avantium N.V. has signed a conditional offtake agreement with Plastipak for the food, beverage, and consumer products industries. Plastipak supplies containers and packaging products to many of the world’s largest consumer products companies. Plastipak will purchase the 100% plant-based, recyclable polymer PEF from Avantium’s FDCA Flagship Plant for use in beverage and food packages for consumers to use and enjoy in the United States.	-
Oct-24	Far Eastern New Century Corporation (FENC) (Taiwan)	-	Innovation	Far Eastern New Century Corporation (FENC), a global leader in advancing sustainability and innovation in green materials, showcased its latest recycling technologies and product solutions FENC® TOPGREEN®Bio3 PET represents a revolutionary approach to sustainability. This innovative material combines carbon capture technology with biotechnology, transforming industrial waste gases into low-carbon polyester.	-
Oct-24	Berry Global Group (US)		Innovation	Berry Launches Fully Recyclable*, High-Performance Alternative to Coloured PET Pill Bottles	-
May-24	ALPLA (Austria)	-	Product Development & Launch	Safe, affordable, and sustainable: the plastic packaging specialist ALPLA is launching a recyclable wine bottle made of PET. The bottle weighs approximately only an eighth of a glass bottle, reduces the carbon footprint by up to 50%, and allows for price savings of up to 30%.	-
May-24	ALPLA (Austria)	Re-Purpose (US)	Partnership	The ALPLA Group and Re-Purpose have announced a strategic partnership to advance sustainable packaging solutions and strengthen the feedstock value chain of ALPLA’s first PET recycling facility in Africa.	-
May-24	Plastipak Holdings (US)	Kraft Heinz (US)	Partnership	Plastipak Packaging, Inc. announce they have partnered with Kraft Heinz to transition KRAFT® Real Mayo and MIRACLE WHIP® containers to be made entirely from recycled PET (rPET) material.	-

Source: Press releases & company websites

DEMAND/SUPPLY OVERVIEW 

DEMAND COMMENTARY

North America & Europe:

Seasonal Demand Fluctuations: Bottled beverage consumption remained weak in the first quarter of 2025, consistent with seasonal trends.  Despite sluggish demand, order volumes increased compared to the same period last year.  Low winter beverage demand is expected to continue through March, with a summer uptick anticipated by beverage bottlers, preform producers, and PET producers.

Mexico:  PET demand remained strong in January 2025.  Market participants are building inventories in anticipation of potential tariff increases.  Both PET spot market prices and recycled PET (r-PET) prices trended higher in January due to growing demand, leading to slight tightness in some regions.

Asia:

Strong Demand for PET Products:  According to the latest data from mainland China's National Bureau of Statistics (NBS), in November 2024, soft drink production was 7.3% lower month-on-month but 5% higher year-on-year.  Total production in the first 11 months of 2024 increased by 6.1% year-on-year.  The edible oil industry also saw a 4.5% year-on-year increase in production through November.  PET producers reported high volumes delivered to the bottled drink sector in early January, reflecting increased production.  Despite growth in the beverage and food industries, the economic recovery in other sectors remains slow, posing challenges for the PET packaging industry.

SUPPLY ANALYSIS

North America:

Major producers maintain a steady production rhythm, ensuring a stable supply of PET packaging products.  Mexico's PET plastic packaging industry operates at high rates, with facilities running smoothly and sufficient supply.  Strong demand for PET resin is expected to continue in the coming months.

Asia:

PET packaging and resin manufacturing supply remains sufficient.  Sanfangxiang and Sinochem Yizheng each brought new units online, adding a total nameplate capacity of 1.25 million mt annually.  CR Chem-Mat's Changzhou plant restarted two units on schedule.  Production at Yisheng Hainan declined due to maintenance on a unit producing 500,000 MT per year.  In South Korea and Taiwan, most operational units run at rates no more than 70%.

Europe:

European PET packaging material manufacturers produce according to order volume and market demand trends.  PET resin imports ordered in October and November 2024 are now being delivered, contributing significantly to the market.  Most domestic suppliers operate at low rates to prevent inventory buildup.  Demand from beverage bottle producers remains seasonally low.

PRICING SITUATION

NORTH AMERICA

Stable Prices: PET packaging material prices are expected to remain relatively stable or fluctuate slightly.  In January 2025, North American PET resin cost US$1.35/kg, 0.7% lower than the previous month.  Demand for PET packaging materials in the food and beverage, pharmaceutical, and electronics industries remains stable.  Demand for PET bottles and films will increase as the consumer market recovers, raising prices.

Trade Policy Impact: Changes in trade policies, such as tariffs, will affect the international trade of PET packaging materials.  Tariffs or other trade barriers could raise the price of imported PET packaging materials and impact local market competition.

ASIA

In China, as of mid-February, the average sales price of PET resin was 6,347 yuan/ton, showing an increase after a previous downward trend.  The crude oil and raw material markets rebounded strongly, providing solid cost support for PET. However, post-Spring Festival, demand across various industries has not fully recovered.  Sluggish market conditions offer limited support for PET packaging demand, making it challenging to sustain significant price increases.

EUROPE

Price Trends: PET prices in Europe decreased by €50–70 per metric ton in October.  Imports of competitive Asian PET resin have added challenges for domestic polyester producers.  PET resin prices began to climb in January due to rising energy values.  Beverage demand remains seasonally low, but CMA forecasts a slight increase in PET resin prices in the coming months.

Demand and Supply Dynamics: The gradual recovery of the global economy is expected to increase demand for PET in food and beverage packaging.  Despite muted demand in the food and drink segments, the driving force of demand growth and cost remains strong, with no severe oversupply to drive prices down

MARKET DYNAMICS

 AMERICAS

The containerboard market experienced mixed dynamics.  The US saw a slight increase in corrugated box shipments by 0.1% in 2024 compared to 2023, despite a 0.2% decline in the fourth quarter.  The operating rate for US containerboard mills rose to 91.2% in 2024 from 86.9% in 2023, with a 4.7% increase in production.  However, the market faced high costs and inflation, leading to slow demand growth.

ASIA

Asia is expected to grow substantially in containerboard capacity, with 6.1 million tonnes of additional capacity projected in 2025 from 17 projects.  This expansion is driven by strong demand and competitive production costs.  The region's focus on recycled linerboard is increasing, with producers aiming to match the quality of virgin kraft linerboard.  Across the Chinese mainland, numerous areas are disbursing trade-in subsidies.  Leveraging the dual impetus of "policies + activities," the vitality of consumption is invigorated.  According to some analysts, consumer demand is continuously unleashed as a succession of consumption-stimulating policies come into full play.  Consequently, the consumer market, in its entirety, is set to sustain a stable growth trajectory.

EUROPE

Europe's containerboard market is facing price fluctuations.  The Kraft-Liner index is decreasing while the White-top Kraft-Liner index is also falling.  Recycled containerboard prices showed minor changes.  Major producers like Smurfit Westrock and SCA announced significant price hikes for brown and white kraft liners, citing good demand and cost pressures.

PROCESS OVERVIEW

Liner and fluting papers (both needed to produce corrugated paper) can be manufactured from primary wood fibres from sustainably managed forests and/or from recovered fibres from paper for recycling.  As a rule, kraft-liner and semi-chemical fluting are manufactured predominantly from primary fibres, whereas test-liner and recycled fluting are predominantly manufactured from recovered fibres.

LINERBOARD MANUFACTURING

Raw Materials:  Virgin wood pulp or recycled materials (e.g., Old Corrugated Containers - OCC).

Pulping: 

• Virgin fibres:  Processed through chemical (Kraft process) or mechanical pulping.
• Recycled fibres:  Broken down in a repulping process.

Papermaking:  Pulp is formed into continuous sheets, pressed to remove excess water, dried using steam-heated rollers, and coated, then wound into large rolls for further processing.

FLUTING PAPER MANUFACTURING

Raw Materials: The same as linerboard, virgin or recycled fibers are used.

Pulping: 

•  Semi-chemical pulping enhances fiber strength.
• Recycled OCC is repulped and cleaned. 

Papermaking:  The pulp is processed into fluting paper, pressed, dried, and wound into rolls, ensuring high flexibility and durability.

CORRUGATED BOX MANUFACTURING

Corrugated Board Production:  Fluting paper is passed through corrugating rollers to create a wavy structure and is then glued between linerboard layers to form a corrugated board.

Cutting and Creasing:  Large corrugated sheets are cut and creased into pre-defined box shapes using die-cutting or rotary-cutting machines.

Printing and Labelling (Optional):  Branding, handling instructions, or product details are printed using flexographic or digital printing techniques.

Folding and Gluing:  The cut sheets are folded into box shapes and glued or stapled at the joints.

Quality Control:  Boxes undergo strength testing, dimensional checks, and visual inspections to ensure durability and compliance with industry standards.  The most common tests are:

• Edge Crush Test (ECT):  Measures stacking strength.
• Bursting Strength Test:  Assesses resistance to punctures.
• Box Compression Test (BCT):  Evaluates load-bearing capacity.
• Moisture Control:  Ensures resistance to humidity.
• Visual Inspection:  Checks for cuts, prints, or glue application defects.

Packaging and Shipping:  Finished boxes are bundled, stacked, and prepared for distribution. 

RECENT DEVELOPMENTS

Date	Linerboard Manufacturer	End User (Company 2)	Development Type	Description	Deal Value
Feb-25	UFP Packaging (US)	Soluciones en Empaque y Logèistica (SEL) (Mexico)	Acquisition	UFP Packaging, the leading supplier of industrial packaging solutions, packaging logistics support, and OEM components across the globe, has acquired a local sheet plant in GDL with the expertise to manufacture sustainable packaging solutions. SEL has operations in GDL and they are planning to extend business to MTY, CUU, and India	-
Jan-25	WestRock (US)	-	Innovation	Smurfit Westrock’s innovative new paper pallet wrap is helping companies make their supply chains significantly more sustainable. The innovative new solution is made from Nertop® Stretch Kraft paper which is fully recyclable. Its capabilities also include high energy absorption and impressive performance in humid conditions. The pallet wrap is the latest addition to Smurfit Westrock’s Better Planet Packaging Portfolio which seeks to reduce the environmental impact of packaging.	-
Jan-25	International Paper (US)	DS Smith (UK)	Acquisition	International Paper completes the acquisition of DS Smith. Two of the leading producers of sustainable packaging, containerboard and pulp products, combined forces on January 31, 2025 to create a new global leader in sustainable packaging solutions, focused on the attractive North American and EMEA regions.	-
Nov-24	Mondi plc (UK)	-	Business Expansion	Mondi has announced the start-up of its new extrusion line at Mondi Coating Štĕti (Czech Republic), marking another milestone in the Group’s commitment to support customers in their transition to sustainable solutions. The extrusion line is part of a broader investment that includes a new production building with state-of-the-art machinery,, coating, and slitting capabilities.	-
Oct-24	International Paper (US)	DS Smith (UK)	Acquisition	International Paper agreed to an all-share combination with DS Smith. The agreement is focused on the European and North American regions and aims to establish a differentiated corrugated packaging company with 90% of revenue from fibre-based packaging.	$9.9 billion (€9.1 Billion)
Oct-24	Mondi plc (UK)	Schumacher Packaging (Germany)	Acquisition	Mondi plc announced an agreement to acquire the German, Benelux, and UK corrugated converting and solid board operations of Schumacher Packaging. This Acquisition will expand Mondi’s corrugated footprint in Western Europe and add complementary fibre-based products, focused on eCommerce and FMCG, to enhance its existing customer offering.	-
Jul-24	WestRock (US)	-	Business Expansion	WestRock, a corrugated packaging company based in the US, will open a new corrugated box manufacturing facility in Pleasant Prairie, Wisconsin, to address the increasing demand from customers within the Great Lakes region.	$ 140 Million
May-24	WestRock (US)	Coca-Cola Beverages (US)	Contract	WestRock and Liberty Coca-Cola Beverages have successfully installed new equipment at the bottler’s production facility in Philadelphia, seeking to replace an estimated 200,000 pounds of plastic rings used in multipack bottled drinks with recyclable paperboard carriers.	-

Source: Press releases & company websites

DEMAND/SUPPLY OVERVIEW  

DEMAND COMMENTARY

Demand for corrugated boxes in the US remained relatively stable, with a slight shipment increase.  However, the market is cautious due to high costs and inflation.

Strong Asian demand drives significant capacity expansion, particularly in recycled containerboard.  On the supply side, paper mills began to resume work and production after the Spring Festival.  Due to the weak supply, the paper mills' shipments of orders before the New Year were mainly based on existing inventory, which also led to a significant decline in paper mill inventories.  As a result, prices also fluctuated and rose slightly.

In Europe, demand is supported by sound market conditions, leading to price increase attempts by major producers.

SUPPLY ANALYSIS

The US saw a 4.7% increase in containerboard production in 2024.  New capacity additions are limited, with a focus on optimizing existing operations.

Asia is leading in new capacity additions, with significant projects underway to meet growing demand.

European producers are seeking price increases to manage cost pressures, with some new capacity expected in the coming years.

PRICING SITUATION

In the US, containerboard prices increased throughout 2024, with major producers announcing further hikes for 2025.  The market is adjusting to high costs and inflation, impacting pricing strategies.

In Asia, pricing dynamics are influenced by rapid capacity expansion and competitive production costs.  The focus on recycled linerboard is expected to impact pricing trends, with producers aiming to offer competitive rates while maintaining quality.  Nine Dragons Paper, a leading papermaking company, announced that they will raise prices.

In Europe, European containerboard prices experienced fluctuations, with decreases in kraft-liner indices and minor changes in recycled containerboard prices.  Producers are pushing for price increases to manage cost pressures and maintain profitability.

LDPE/HDPE

• The new US administration's policies may influence the prices of raw materials for plastic packaging, as previous tariff adjustments by various countries could impact future costs. 
• This may affect the prices of plastic packaging materials from a cost perspective. 
• Additionally, the global economic environment will impact terminal demand and alter consumer habits at the end-user level, thereby influencing the supply-demand relationship and product costs. 
• The trend towards environmentally friendly and recyclable plastic packaging will continue in the long run.

PET

• Like other plastic packaging, the PET packaging industry is poised for steady growth, driven by sustainability initiatives, technological advancements, and evolving consumer preferences.

LINERBOARD

• The global containerboard market is experiencing mixed dynamics, with stable demand but price fluctuations in all regions and significant capacity expansions in Asia. 
• Producers are navigating inflated costs and inflation, leading to strategic price increases and capacity optimizations. 
• The focus on recycled linerboard is growing, particularly in Asia, as producers aim to meet rising demand with competitive and sustainable solutions.