Stock Markets March 12, 2026

Jefferies Flags Mondi, SCA and Stora Enso as Likely Beneficiaries of Rising European Containerboard Prices

Analysts point to recent recycled board gains and energy-driven cost increases as supportive for select virgin fiber producers and integrated box makers

By Maya Rios
Jefferies Flags Mondi, SCA and Stora Enso as Likely Beneficiaries of Rising European Containerboard Prices

Jefferies analysts say Mondi, SCA and Stora Enso stand to gain in the European containerboard market after recycled containerboard prices rose in March and several large producers announced further price increases tied to higher energy costs. Recycled prices in Germany climbed €40 per ton month-over-month in March, and additional energy-linked hikes of €100 per ton have been declared by major producers.

Key Points

  • Recycled containerboard prices in Germany rose €40 per ton (6%) month-over-month in March after earlier declines of €112.50 per ton (15%) from July to January.
  • Several major producers announced energy-driven price hikes of €100 per ton, with SCA confirming a €100 per ton (12%) increase effective in April.
  • Jefferies sees virgin fiber producers Mondi, SCA and Stora Enso as primary beneficiaries, with large integrated box makers like Smurfit Westrock as secondary winners.

Jefferies analysts have identified Mondi, SCA and Stora Enso as potential beneficiaries in the European containerboard market following recent price moves and rising energy-driven costs.

According to the investment firm, recycled containerboard prices in Germany increased by €40 per ton, equivalent to about 6%, month-over-month in March. Separate announcements have been made for further energy-driven price increases of €100 per ton. The March uptick follows a period of cumulative declines totaling €112.50 per ton, or roughly 15%, from July through January.

Virgin containerboard prices were unchanged month-over-month in the latest data, though Jefferies notes that virgin prices typically track recycled containerboard with a lag. In line with this pattern, SCA has declared a €100 per ton price increase, equal to about 12%, set to take effect in April.

Market inputs also shifted. Waste paper prices steadied in the first quarter of 2026, rising €2 per ton month-over-month to €115 per ton, down from a June peak of €189 per ton, the firm reported.

Jefferies said many investors were initially skeptical about the €100 per ton increase announced for February and March, particularly before energy costs rose, citing perceptions that the increase had failed amid European overcapacity and operating rates around 84%. The firm described the achievement of a €40 per ton, or 6%, gain in recycled containerboard as a positive development for European containerboard producers and box makers.

Higher energy costs linked to the conflict in the Middle East have lifted the cost curve by an estimated €30 to €50 per ton, Jefferies added. Major industry players have responded: Smurfit Westrock, identified as the market leader with a 13% share, and SAICA, the number two player with a 10% share, have both announced additional price hikes of €100 per ton, representing roughly 15% increases.

On balance, Jefferies ranks virgin European containerboard producers Mondi, SCA and Stora Enso as favored names, and sees large integrated box makers such as Smurfit Westrock as secondary beneficiaries from the recent pricing developments and energy-related cost pressure.


Context note - The analysis above reflects Jefferies' view as reported and summarizes the latest disclosed price moves and market indicators.

Risks

  • European operating rates around 84% suggest persistent overcapacity, which could limit the durability of recent price increases - this affects paper, packaging and related industrial sectors.
  • Volatility in energy costs - Jefferies links a €30 to €50 per ton rise in the cost curve to higher energy prices tied to the Middle East conflict, introducing profit margin uncertainty for producers and converters.
  • Waste paper feedstock remains below previous peaks, having stabilized at €115 per ton in Q1 2026 after a June high of €189 per ton, which may constrain raw material-driven margin recovery for paper makers.

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