How the energy crisis impacts the supply of paper and cardboard
Andrea Pastore 19/06/2026 0
How the energy crisis impacts the supply of paper and cardboard. Cost increases due to the war between Russia and Ukraine complicate a situation already made difficult by the pandemic years. In this regard, Assocarta reveals how more and more plants are shutting down due to the failure to cover gas costs. A situation that risks also affecting the publishing and packaging industries.
New production year at risk?
80% of the paper industry has stopped or slowed down its activity due to the skyrocketing costs of gas. Assocarta denounces a lack of contract renewals by suppliers for the new thermal year starting October 1st, and the stability of waste collection services would also be at risk. This situation only worsens due to the conflict in Ukraine, which has severely strained supply chains for raw materials and resources in every sector, even during the last two years of the pandemic. Now, the entire Italian productive sector (and beyond) is struggling to move forward due to price increments caused by the increase in the cost of energy and raw materials, which place an additional burden on the industry. The combination of these factors makes the import and export of raw materials and energy even more complicated, further slowing down production. Just think of the costs to be borne by entrepreneurs which then, inevitably, spill over onto the final consumer. According to Assocarta, the problem blocks not only the entire packaging production chain, but also the production of sanitary toilet papers, medical papers, as well as graphic papers for publishing and information.
S.O.S Raw materials
Why is there a shortage of raw materials? Suffice it to say that for paper and cardboard within the production process, both wheat starch and potato starch, along with other foods, are used; these resources, in fact, were imported to be used to produce packaging paper. Russia and Ukraine are, precisely, producers of grain and starches; consequently, sourcing raw materials is becoming increasingly difficult, resulting in longer delivery times compared to orders received. Due to this slowdown in exports, it is also normal that the use of packaging and wrapping papers is lower, causing significant damage to companies. Furthermore, the war also puts the entire circularity process in crisis related to the recycling of paper and corrugated cardboard. This means that fear also arises regarding a return to plastic packaging production, backtracking on the evolution of sustainable and easily reusable packaging.
The data
This is therefore not a crisis of demand, but a difficulty for companies to manage the sudden increase in the costs of raw materials and energy. According to Assocarta data, raw material prices suffered their first increases on pulp from the end of 2020, equal to 60% (long fiber) and 70% (short fiber), and a 15% increase in the consumption of paper for recycling in the first half of 2021. Other factors have also influenced the rise in raw materials, including logistics problems related to transport both by road (with increasing costs against a decreased capacity) and by sea, with shipping companies unable to satisfy the pressing demands of the market. Gas prices went from 20/30 euros/Mwh in the first half of 2021 to 100/120 euros/Mwh in March 2022. In a single word, quadrupled. It must be considered, in fact, that the cost of energy accounts for about 20% of the finished product, which is why the paper mill must find a way to pass the additional expense downstream, increasing the price for the buyer. The most negative consequence? Closure, just as happened in the first half of March. In all this, costs rose so rapidly that producers did not have the time or capacity to absorb them, with the risk of no longer being able to produce or doing so at a loss. The summer break helped businesses cushion the price surge, but now not everyone is able to restart, a problem that affects about 80% of the paper industry. The hope is that the European Commission will commit to stopping the price spiral, for example through a price cap at the European level, along with the renewal of the tax credit for the fourth quarter. However, the so-called electricity release would also be needed, already provided for by one of the 'aid' decrees, which would give the GSE (Energy Services Manager) the possibility to release quantities of renewable energy onto the market at reasonable prices, which on one hand would help lower costs, and on the other hand would assist decarbonization processes.
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