AF&PA reports 3.1% drop in US containerboard production for Q3 2025 

USA – The American Forest & Paper Association released its Containerboard Quarterly Report for the third quarter of 2025 on October 31, revealing a 3.1%  decline in total containerboard production compared to the same period in 2024. 

Over the first nine months of the year, production fell by 3% from the previous year.

These figures highlight ongoing adjustments in the sector as manufacturers navigate fluctuating demand and supply dynamics.

Operating rates for the four primary grades, unbleached kraft linerboard, bleached linerboard, medium, and corrugated medium, rose from the second quarter, following a 1.7%  drop in overall capacity during that time. 

Year-to-date, these rates held steady against 2024 levels. 

Domestic new supply remained largely unchanged from the first quarter, marking an uptick from the subdued second quarter. 

Mill inventories reached a peak of nearly 462,000 short tons in August, the highest in more than 15 months, before dropping 8 percent in September.

AF&PA President and CEO Heidi Brock addressed the trends in a statement, noting, “The sector continues to adapt to evolving market conditions through targeted capacity management.” 

She added that these efforts aim to maintain stability for downstream packaging users.

The report’s data points to a market where supply chain refinements are taking hold, even as broader economic factors influence output.

This quarterly snapshot comes against a backdrop of significant industry moves.

In 2025, North American producers have shuttered mills equivalent to about 5.5%  of regional capacity, including closures by International Paper and Georgia-Pacific totaling 2.5 million tons. 

Smurfit Westrock recently announced reductions of around 500,000 tons across containerboard and consumer board grades. 

Such actions follow early-year price hikes of US$30 to US$40 per ton announced by major players like Packaging Corporation of America and International Paper, driven by rising input costs and demand from e-commerce and food sectors.

Brock emphasized the environmental angle indirectly, stating that the industry prioritizes efficient resource use. 

As tariffs and manufacturing slowdowns linger, these capacity cuts could ease imbalances, setting the stage for steadier pricing ahead. 

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