TL;DR

Paper and resin input costs are elevated heading into Q2 2026. OCC at $188/t and PP at $1,149/t drive upward pressure on corrugated and flexible packaging. Buyers renewing before June face a 6-10% cost headwind.

Paper Inputs: Fibre Remains Tight

OCC is at $188/t — 18% above the same week in 2025. NBSK holds at $1,135/t. The PackIndex CORR finished unit index stands at $0.486/unit (+2.14% MoM).

The Pulp Market Volatility Forecast for Q2 2026: The key variable is German OCC collection tonnage. A recovery to Q3 2025 levels would ease CORR by $0.010-0.012/unit.

Resin Inputs: PP Easing, LDPE Firm

Polypropylene (PP) has pulled back to $1,149/t from its January peak. The Recycled Resin Price Index 2026 shows the PCR PE premium narrowing from 18% to 14% as EU PPWR compliance builds recycled content supply.

Q2 Forecast

IndexCurrentQ2 ForecastConfidence
CORR$0.487$0.497-0.395HIGH
FLEX$0.371$0.357-0.290MEDIUM
PAPR$0.526$0.529-0.425HIGH

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