Report shows packaging paper shipments up in Q2

Late last month, the Washington-based American Forest & Paper Association (AF&PA) released its quarterly containerboard and boxboard reports, revealing declines in production and operating rates as inventory levels soared early in the quarter.

According to the AF&PA, total containerboard production in the second quarter of 2025 decreased 5 percent compared with the same period last year and was down 3 percent compared with the same six months of 2024.

The report also shows that operating rates for all four major containerboard grades declined from the first quarter of this year, with the overall rate dropping 2.7 percent.

Containerboard production for export faced the steepest decline, dropping nearly 12 percent year to date, while domestic new supply only has declined 1.2 percent.

Mill inventories peaked in May, reaching their highest level in more than 15 months before declining slightly to end the quarter at 433,000 short tons.

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Boxboard production, however, essentially was flat in the second quarter of this year compared with the same period last year, with the operating rate coming in at 87.6 percent, down 1.8 percent from the same quarter last year, according to the AF&PA.

The report shows that domestic solid bleached boxboard production increased 6 percent compared with the second quarter of last year and plate, dish and tray production increased 10 percent.

Uncoated recycled boxboard unmade orders were up 4 percent compared with the end of the first quarter.

The AF&PA also has released its monthly packaging papers and printing and writing papers reports, showing mixed results between the two grades.

According to the latest data from the AF&PA, total packaging papers and specialty packaging shipments have increased the last two months, up 5 percent in both June and July compared with June and July 2024. However, in June, total shipments were down 2 percent compared with the same six months of last year and down 1 percent in July.

In the most recent report, the AF&PA says inventories were up 8.1 percent in July compared with last year.

On the printing and writing side, total shipments slumped in June and July, decreasing 6 percent in June compared with last year and down 8 percent in July.

The report also shows back-to-back declines in U.S. purchases of printing and writing papers, down 4 percent in June and 5 percent in July, while inventory levels increased for the third straight month and were up 2 percent in July compared with the previous month.

The three major printing and writing categories, uncoated freesheet (UFS), coated freesheet (CFS) and mechanical papers, saw a negative performance on both a month-over-month and year-over-year basis. UFS shipments are down 8 percent month over month, CFS shipments are down 3 percent month over month and mechanical paper shipments remain flat year over year.