Billerud Second Quarter Insights: North American coated freesheet and
specialty paper (Sappi) and European Paper Packaging (Mondi)
Regional Market Dynamics: The contrast between Billerud’s operations in Europe and North America is defined by distinct market conditions, strategic priorities, and performance trajectories. North America is currently characterized by favourable and stable market conditions, with the region achieving its highest sales volume since late 2022. This performance is supported by a strong local supply position and operating rates consistently above 90%. Conversely, the European market sentiment remains muted, though the region is showing signs of improvement across specific sales channels.
Market Sentiment and Performance in Sack Kraft: The industrial channel, which includes the company’s exposure to sack kraft, has shown signs of improvement during the second quarter of 2026. Specifically, the sentiment within the sack segment has strengthened throughout the quarter. The company reports that it is currently sold out of brown sack, noting a higher level of demand pull than has been observed for several quarters. While white sack demand remains somewhat muted, it is performing better than in previous periods. The company is observing a positive momentum in selective channels, with the industrial segment benefiting from improved conditions in the Middle East, North Africa, and Asia.
Third quarter outlook: The company anticipates a positive pricing impact of 1-2% for the European region and 2-3% for North America compared to the second quarter. Billerud expects continued favourable conditions in North America, supported by strong order books. While the European outlook remains more uncertain, the company anticipates a volume uplift in the third quarter as it continues to navigate a challenging industry landscape. The company remains open to evaluating structural changes and active roles in addressing broader industry challenges, acknowledging that the current sector-wide capacity imbalance requires ongoing management and potential strategic adjustments. The company anticipates a relatively flat input cost situation, though the environment remains unpredictable due to volatile oil prices and geopolitical tensions in the Middle East. View Presentation