Thursday, December 11, 2025
The pulp industry faces market challenges like price volatility and high inventories. Metsä Group plans production adjustments at its Finnish mills. The company confirmed the restart of its Joutseno pulp mill on December 8, 2025, following a significant production shutdown that had been in effect since June. However, this resumption is immediately followed by a curtailment at a sister facility, signalling that operational stability remains elusive in the current environment.
To align production volume with fluctuating international demand, Metsä Group is implementing a strategic one-month production curtailment shutdown at the Rauma pulp mill.
Joutseno restart: The Joutseno mill, which has an annual capacity of approximately 690,000 tonnes of softwood pulp, will resume operations on December 8, 2025, ending its six-month stoppage.
Rauma curtailment: The Rauma mill, which can produce around 650,000 tonnes per year of softwood pulp, will begin its shutdown on Monday, December 15, 2025. The restart process is scheduled to begin gradually, department by department, from Wednesday, January 7, 2026.
This pattern of managing capacity illustrates the careful balance major Nordic producers must strike to control inventory levels and stabilise prices in a competitive global market. Production capacity for Northern Bleached Softwood Kraft (NBSK), the key long-fibre grade, has seen reductions across the Nordic region and North America as manufacturers try to force a tighter supply-demand balance.
Ismo Nousiainen, CEO of Metsä Fibre, articulated the rationale behind the operational adjustments, pointing directly to the need to match output with actual market requirements.
“Through production shutdowns, we are adjusting our production to reflect the market demand for long-fibre softwood pulp,” Nousiainen stated.
Critically, the CEO’s comments provided a sober assessment of the near-term outlook, suggesting that the current instability is not expected to resolve quickly. “Since the market situation for softwood pulp is estimated to continue uncertain for the beginning of next year, we are preparing for significant production curtailments at Joutseno pulp mill also during 2026,” he added.
This forward-looking statement signals to the market that the strategy of controlled downtime will likely be an ongoing feature of Metsä Group’s operations throughout the new year, indicating a prolonged period of pricing and demand pressure.
The current situation is compounded by several macroeconomic factors that are impacting the wood pulp market:
Weak Asian demand: Low order volumes from key Asian markets, which are the largest consumers of global pulp, have been a primary driver of high inventory levels.
Volatile pricing: Global pulp prices, particularly for NBSK, have experienced significant declines from the high points observed in prior years, compressing the operating margins of high-cost producers in the Nordics.
Downstream overcapacity: Overcapacity in downstream paper and paperboard markets, particularly in Asia, is acting as a ceiling on global pulp prices, as buyers remain hesitant to commit to large volumes at higher costs.
Rising input costs: Despite recent declines, producers in Finland and Sweden continue to face higher raw material (wood chip) and energy costs compared to some competitors, placing greater importance on cost management and efficiency.
While the long-term outlook for the overall wood pulp market remains positive, driven by the global surge in demand for sustainable packaging (corrugated boxes, cartonboard) spurred by e-commerce and the shift from plastic to fiber, the short-term reality is one of oversupply and pricing pressure. Long-fiber pulp is essential for strength-demanding applications like containerboard and sack paper, making its market health vital to the packaging industry.
Metsä Group’s move aligns with a broader industry trend among Nordic and North American producers who are strategically using downtime to reduce inventories. This market-related curtailment is a temporary measure designed to support market recovery by rebalancing supply and demand.
The company, which is deeply committed to the circular bioeconomy, is a major producer of pulp, sawn timber, biochemicals, and bioenergy, using fresh northern wood as an alternative to fossil-based materials. Managing its primary input—softwood pulp—via these curtailments is a necessary business strategy to ensure profitability and long-term competitiveness in a challenging cycle.
As the industry moves into 2026, stakeholders will closely monitor inventory drawdowns in Asia and the pace of demand recovery to determine if this aggressive capacity management will be sufficient to stabilize the softwood pulp market.
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Tags: decarbonization, Joutseno Pulp Mill, Long-Fibre Softwood Pulp, pulp industry, Pulp Mill Shutdown, Rauma Pulp Mill, Softwood Pulp Market
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