German recycled carton producers seek higher prices as Folbb mills stay closed

Recycled grades face renewed price demands

German recycled carton suppliers could seek another price increase before the end of 2026, even as the wider European carton market continues to carry excess capacity. EUWID reports that market participants are not ruling out renewed price discussions for both GD 2 recycled carton and greyboard.

The emerging demands contrast with conditions in the virgin-fibre carton segment. Buyers and converters still see enough capacity in Germany and elsewhere in Europe, limiting the likelihood that the loss of two mills will create a broad physical shortage. The immediate effects are instead likely to differ by grade, supplier and delivery schedule.

Folbb closures remove 245,000 tonnes

At the beginning of September, the German market received confirmation that Folbb’s two carton mills would not restart. According to EUWID, their closure removes about 245,000 tonnes of annual capacity from the GC carton market. Industry participants said that volume was too small to reduce existing overcapacity in Germany and Europe substantially, but large enough to cause some disruption.

The shutdown of the Baiersbronn carton mill was described by market participants as particularly unexpected. Customers that had relied on the site must find alternative suppliers at short notice. Although industry sources say sufficient replacement capacity is available, switching supply can still involve grade qualification, revised production planning and changes to delivery arrangements.

Lead times are the clearest operational constraint. German converters told EUWID that delivery periods for GC 2 remain long. That means nominal spare capacity does not necessarily translate into immediately available material, especially for buyers requiring specific quality, volume or delivery windows.

Pricing outlook differs by segment

The closures tighten the supply outlook for virgin-fibre carton without eliminating the market’s broader surplus. Producers may gain some support in negotiations where customers need rapid replacement volumes, but continued overcapacity limits their leverage across the whole market. Converters with diversified supplier portfolios are better placed to absorb the disruption than companies dependent on the closed mills.

Recycled carton is following a separate pricing path. The prospect of new demands for GD 2 and greyboard indicates that suppliers see room to reopen negotiations this year. EUWID did not specify the size or timing of any proposed increase, and the source material does not identify individual producers behind the demands. Buyers will therefore watch whether requests become formal and whether they gain traction across contracts.

For carton and folding-box producers, the central issue is not an overall lack of European capacity but the availability of the required grade at the required time. The removal of 245,000 tonnes changes procurement patterns, while long GC 2 lead times could keep parts of the market tight. At the same time, renewed recycled-carton price discussions may raise input-cost pressure for converters even without a general shortage.