Why Energy Prices Are Still High – And What It Means for Tape Cores, Label Cores and Cardboard Tubes

The latest market reporting now supports what many manufacturers have already been seeing on the ground: even with a ceasefire in place, energy prices may take months to return to anything like previous levels. Analysts are pointing to continued disruption in the Strait of Hormuz, unstable cargo flows and a persistent risk premium across oil and gas markets.

For businesses that rely on paper and board conversion, that matters enormously. At Just Paper Tubes, our May 2026 price increase notice explained that natural gas is a major input cost in paper production, and that the market had already been reshaped by supply shocks, mill closures and transport cost inflation. Those pressures have not disappeared. In fact, current reporting suggests they are likely to remain with us for a prolonged period.

Why prices are unlikely to fall quickly

The key issue is not simply whether a ceasefire has been announced. The issue is whether energy and raw material supply chains can return to a stable, predictable and normal rhythm. According to the Al Jazeera report, experts believe the market needs a reliable flow of cargo through the Strait of Hormuz before prices can properly settle, and that normalisation may take weeks or months rather than days.

That matters because the Strait of Hormuz remains one of the most important energy corridors in the world, carrying roughly 20 percent of global oil and gas exports. If vessel movements remain disrupted, even temporarily, manufacturers across Europe continue to feel the effect through higher energy costs, increased transport charges and tighter availability of key industrial inputs.

What this means for the paper and tube industry

For manufacturers of tape cores, label cores, cardboard tubes, paper cores and carpet tubes, high energy costs do not stay neatly contained within utility bills. They work their way through the whole chain.

Paper mills face higher production costs. Board producers face rising conversion costs. Adhesive and transport costs remain under pressure. Lead times can become less predictable. All of that flows through to finished products, including the cardboard tubes and paper cores used every day across converting, flooring, packaging, print and industrial applications.

Our earlier May 2026 update set out the wider picture clearly: domestic cost increases, coreboard scarcity, European mill disruption and higher logistics costs were already driving a new market reality. The latest energy outlook reinforces that this is not a short-lived spike. It is a longer period of elevated cost.

Our focus at Just Paper Tubes

At Just Paper Tubes, our priority remains the same: keeping your production moving. As we said in our May 2026 notice, we moved early to protect supply by building physical stock and strengthening resilience in our sourcing position. That remains central to how we support customers through a difficult market.

We manufacture and supply a wide range of products, including:

• tape cores

• label cores

• cardboard tubes

• paper cores

• carpet tubes

Whether your business needs short-run flexibility or dependable volume supply, our aim is to offer something increasingly valuable in this market: continuity, consistency and honest communication.

Looking ahead

The energy market may eventually stabilise, but the latest analysis suggests that process will not be immediate. For now, businesses across the paper supply chain should plan on the basis that costs are likely to stay firmer for longer.

At Just Paper Tubes, we will continue to monitor developments closely and keep customers informed. In a market like this, preparedness matters. So does working with a supplier that understands how global energy disruption translates into real-world pressure on tape cores, label cores, cardboard tubes, paper cores and carpet tubes.