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How the Iran Conflict and Rising Pulp Prices Are Affecting Global Tissue Paper Supply Chains in 2026

How the Iran Conflict and Rising Pulp Prices Are Affecting Global Tissue Paper Supply Chains in 2026

by | Mar 12, 2026 | Industry News

Introduction

Recent geopolitical tensions involving Iran have drawn global attention due to their potential impact on international trade and supply chains. One of the most critical areas affected is the Strait of Hormuz, a strategic maritime passage connecting the Persian Gulf to the global ocean.

A significant portion of global oil shipments and international cargo passes through this corridor daily. Any disruption or military tension can quickly affect logistics, transportation costs, and industrial production.

For industries relying on global trade, including the tissue paper and pulp sector, these effects may be indirect but meaningful. Rising freight rates, volatile energy prices, and supply chain disruptions can influence raw material costs and the price of finished products.

This article explores how the current geopolitical situation could impact global shipping, tissue paper raw material costs, and sourcing tissue products from China, with the latest market data incorporated.

1. Impact on Global Ocean Shipping

Increased Risk in the Strait of Hormuz

The Strait of Hormuz is one of the world’s most strategically important maritime routes. It connects major oil-producing countries in the Middle East with international markets across Asia, Europe, and North America.

During periods of military tension, shipping companies take precautionary measures, leading to slower traffic, rerouted shipping lanes, and additional safety inspections. Even if the strait remains open, perceived risks can affect global shipping schedules and container availability.

Rising Freight Costs and War-Risk Insurance

Geopolitical conflict often results in higher war-risk insurance premiums. Shipping lines must purchase extra coverage to protect cargo and vessels traveling through potentially dangerous areas.

These insurance costs are typically passed along as freight surcharges, which can increase transportation costs for importers and exporters. Additionally, shipping lines may adjust global pricing structures to offset operational risks, further raising logistics costs.

Energy Price Volatility

Energy prices are closely tied to Middle East stability. Oil price fluctuations directly affect marine bunker fuel, a major component of shipping expenses. Higher fuel costs can translate into rising freight rates, affecting industries worldwide, even those not directly trading with the region.

2. Impact on Raw Material Costs for Tissue Paper

Energy-Intensive Manufacturing

Tissue paper production is highly energy-intensive, including pulping, drying, converting, and packaging. Rising energy prices impact:

  • Electricity and steam generation

  • Transportation of raw materials

  • Chemical processing and additives

Since energy accounts for a significant portion of production costs, fluctuations directly affect tissue manufacturing.

Recent Price Trends in Pulp and Paper Markets

Recent industry data show that raw material costs in the paper supply chain continue to face upward pressure:

Material Price (CNY/ton) Trend Notes
Pulp Futures (Mar 2026) 5,300 ↑ +2.1% Main contract
Softwood Pulp Benchmark 5,241 ↑ +1.8% Major domestic suppliers
Hardwood Pulp Benchmark 4,565 ↑ +2.3% Export benchmark
Tissue Jumbo Roll Avg Price 5,850 ↑ Stable Domestic market spot
Corrugated Paper 2,764 ↑ +0.6% Minor upward pressure

(Sources: fxbaogao.com, goodsfu.10jqka.com.cn, stock.hexun.com, sohu.com)

These trends show that pulp accounts for 60–70% of total tissue production costs, meaning even small price increases significantly affect final product costs.

Supply Chain Pressure

When energy, logistics, and raw material prices rise simultaneously, tissue manufacturers face cost pressures. Companies respond by:

  • Optimizing production efficiency

  • Adjusting product pricing

  • Exploring alternative raw material sources

These adjustments may eventually influence global tissue product prices.

3. Impact on Sourcing Tissue Products from China

China is a leading producer and exporter of tissue paper. Many international buyers rely on Chinese manufacturers for bulk or private-label products due to production capacity and competitive pricing.

Higher Ocean Freight Costs

Freight costs are a major component of total landed cost. Even if shipments do not pass through the Strait of Hormuz, global shipping market interconnections mean that cost increases elsewhere can influence pricing for China exports.

Manufacturing Cost Pressures

Chinese manufacturers also face rising costs due to energy price fluctuations and pulp market volatility. Benchmark pulp prices—Softwood CNY 5,241/ton, Hardwood CNY 4,565/ton—signal potential cost pressures for exporters.

Supply Chain Uncertainty

Geopolitical instability may cause fluctuating freight rates and extended shipping times. Buyers should plan procurement proactively and maintain flexible sourcing strategies.

4. How Buyers Can Manage Risk

  • Maintain proactive inventory: Ensure adequate stock to buffer delays

  • Monitor freight trends: Book shipping space in advance

  • Partner with reliable suppliers: Ensure production stability

  • Flexible procurement strategies: Adjust order sizes or schedules

These strategies help mitigate risks from geopolitical and market uncertainties.

Conclusion

While the Iran conflict may seem geographically distant, its economic impact spreads across global supply chains. Tissue paper manufacturers and importers are likely to experience higher freight rates, rising energy costs, and pulp price volatility, affecting the cost of sourcing products from China.

Proactive monitoring, flexible procurement, and strong supplier relationships remain essential for navigating these challenges.

About Us

We are a professional tissue paper manufacturer and exporter in China, committed to providing international customers with stable supply, consistent quality, and competitive pricing.

Our product range includes:

  • Toilet paper

  • Facial tissue

  • Napkins

  • Kitchen paper towels

  • Private-label tissue products

With robust production capacity and export experience, we help global partners maintain reliable supply chains even in volatile markets.

Contact us today to discuss your sourcing needs and explore our product offerings.

Exploring the Largest Paper Companies in the World

by | Sep 30, 2024 | Industry News

The paper industry plays a crucial role in global commerce, providing essential products ranging from packaging materials to everyday household items. This article will explore the largest paper companies in the world, focusing on their significance in the market, the products they offer, and their impact on various sectors.

1. Introduction

The paper industry has evolved significantly over the years, with several major players dominating the market. The biggest paper companies not only lead in production capacity but also influence trends in sustainability and innovation. As we delve into the top paper companies globally, we will examine their contributions to the industry and highlight the leading toilet tissue manufacturers in the USA.

2. Overview of Major Paper Companies

The paper industry comprises various segments, including packaging, printing, and tissue products. Here are some of the largest paper companies in the world:

  • International Paper Company: Based in the USA, International Paper is one of the biggest paper companies globally, specializing in packaging and paper products. It is recognized for its commitment to sustainable practices.
  • Stora Enso: Headquartered in Finland, Stora Enso is a major player in the global paper market, focusing on renewable materials. The company produces various paper products, including newsprint and magazine paper.
  • Sappi: Originating from South Africa, Sappi is known for its high-quality coated fine paper and packaging products. It has a strong presence in Europe and North America, making it one of the top paper companies.
  • UPM-Kymmene Corporation: Another Finnish company, UPM is a leading manufacturer of paper, wood-based products, and biofuels. It is recognized for its innovative approaches to sustainability in the paper industry.

3. Major Tissue Companies

In addition to traditional paper products, tissue companies have gained prominence due to the increasing demand for hygiene products. Here are some of the notable tissue paper manufacturers in the USA:

  • Kimberly-Clark Corporation: Known for brands like Scott and Huggies, Kimberly-Clark is a leading player in the tissue market, producing a wide range of toilet paper and other hygiene products.
  • Procter & Gamble: While primarily known for consumer goods, Procter & Gamble also manufactures toilet tissue under brands such as Charmin, making it one of the largest toilet tissue manufacturers in the USA.
  • Georgia-Pacific: A subsidiary of Koch Industries, Georgia-Pacific is a significant player in the tissue market, producing well-known brands like Brawny and Angel Soft.

4. The Impact of Large Paper Companies

Large paper companies not only dominate the market but also influence environmental practices. Many big paper companies are adopting sustainable sourcing and manufacturing processes to minimize their ecological footprint. This shift is crucial in addressing the challenges of deforestation and waste management associated with paper production.

5. Conclusion

The paper industry, driven by major players and significant manufacturers, continues to evolve with changing consumer demands and environmental considerations. The largest paper companies in the world are at the forefront of this evolution, shaping the future of paper production and consumption. As the demand for sustainable practices grows, these companies will play a pivotal role in leading the industry towards a more responsible and eco-friendly future.

By understanding the landscape of the biggest paper companies, including the top tissue paper manufacturers in the USA, businesses can make informed decisions regarding partnerships and procurement in this essential sector.

Toilet paper price is rising!

Toilet paper price is rising!

by | Jun 14, 2022 | Industry News

According to CCTV finance and economics, recently, the CEO of Suzano SA said in an interview that Russia is an important timber supplier in Europe. Due to the continuous conflict between Russia and Ukraine, the timber trade between Russia and Europe has been completely blocked, and the production capacity of European pulp producers has been restrained. At present, the global pulp inventory has been gradually reduced, and supply disruptions may occur at any time.

toilet paper tissue wholesale

The CEO of Suzano SA said in an interview that Russia is an important timber supplier in Europe. Due to the continuous conflict between Russia and Ukraine, the timber trade between Russia and Europe has been completely blocked, and the production capacity of European pulp producers has been restrained. At present, the global pulp inventory has been gradually reduced, and supply disruptions may occur at any time. A few days ago, Suzano SA, the world’s largest pulp producer, warned that the global pulp inventory had dropped sharply, and the supply might be cut off at any time, which would trigger a new round of paper price rise.

With the shortage of pulp and the high price, the paper-making enterprises are unable to bear the cost pressure and have announced price increases. In the last 30 days, the price of virgin wood pulp toilet paper material has climbed to almost the highest price level in the past 10 years. And the supermarket also raised the price of toilet tissue, tissue paper and kitchen towel. All the toilet paper manufacture in China feel anxious about this issue.