The report provides an in-depth analysis of the current supply-demand dynamics, price trends, and industry challenges in the global commodity pulp market.

In 2025, global bleached chemical pulp shipments increased by approximately 3% year-on-year, with China contributing significant growth, while European and North American markets saw declines. On an inflation-adjusted basis, pulp prices are near historical lows. Against the backdrop of a long-term downward trend in industry costs, the market is facing structural oversupply pressures. China's paper and board capacity continues to grow faster than demand. Combined with the release of new capacity over the past 18 months, the industry has fallen into an intense internal competition. Companies have significantly increased their export dependence, leveraging cost advantages to capture global market share in integrated paper and pulp, further suppressing pulp prices.

On the cost side, the competitiveness of Chinese pulp producers has improved significantly, with wood prices remaining at low levels. However, geopolitical conflicts in the Middle East have raised logging and logistics costs, which may push wood chip prices higher again in the future. Substitution trends are also intensifying market pressure. Low-cost pulp substitution is increasingly occurring in areas such as dissolving pulp and fluff pulp, squeezing the market space for traditional high-priced pulp grades.

At current price levels, many mills in the Northern Hemisphere are operating at a loss, increasing expectations of supply-side production cuts. With rising cost rigidity on one hand and continued demand-side pressure on the other, pulp prices are likely to remain within a narrow range in the short term, and industry profitability will continue to face headwinds.