The Cost of a Volatile World: From High-Performance Cores to Global Conflict

In the space of a single week, the global landscape of 2026 has shifted from a state of uneasy tension to a full-blown tectonic reorganisation. For those of us in the heart of British manufacturing, the news is hitting home in two very different, yet deeply interconnected ways.

The industry is currently facing what analysts are calling a "lockstep" pricing strategy from global giants. On top of Sonoco’s announcement of a $70 (£55) per tonne hike for uncoated recycled paperboard (URB) in their home markets, we have now seen a wave of aggressive increases from Sappi Europe and Smurfit Westrock:

• Smurfit Westrock: Following the lead of North American majors, they have implemented matching hikes to stabilise margins amidst global pressure.

  
  

• Sappi Europe: Announcing a €50 per tonne increase on Woodfree Coated (WFC) sheets (effective 16th March), with speciality papers jumping by €50–€70 and Top Liner increasing by 7–8% (effective 1st April).

  
  

If your operations rely on high-performance cores, tape cores, or carpet tubes, the "cost of doing business" is under more pressure than we have seen in years. These companies are citing "unsustainable" price levels and "persistent cost inflation." But why now?

The Energy Catalyst: European TTF and the Fibre Paradox

The most immediate shock has hit the energy sector. Following the escalation of conflict between the US, Israel, and Iran—and the subsequent threats to the Strait of Hormuz—European TTF natural gas prices have experienced historic volatility.

Manufacturing paper tubes is an energy-intensive process. When the cost to power the mills spikes, those costs eventually have to be accounted for. But it’s not just about gas; it’s about the fibre. It is a little-known fact of our industry that the highest quality waste travels the world. To produce a high-performance core—the kind that can withstand the extreme crushing forces of high-speed film winding—manufacturers require specific, high-strength grades of recycled fibre.

As shipping costs skyrocket due to rerouting around the Cape of Good Hope, the logistical cost of moving that "best-in-class" waste is becoming a major inflationary driver. When shipping costs increase, the world gets smaller, and the price of quality goes up.

JPT: Strategic Action to Protect Our Customers

At JPT, we recognise that our customers cannot afford for their production lines to stop because of global instability. While the market is in flux, we have taken decisive, strategic action to insulate our partners from these "charging times."

Just as the United States maintains its Strategic Petroleum Reserve to protect its economy from global oil shocks, JPT has established the UK's largest Strategic Coreboard Reserve.

As this is only bays 27, 28, and 29!!!

• Utilising Our Financial Backing: JPT has moved aggressively to secure raw material positions. We aren't just reacting to the market; we are participating in it with the strength to hold firm.

• The UK’s Largest Independent Coreboard Warehouse: We are proud to operate the UK’s largest independent raw material warehouse. This facility allows us to bypass the "hand-to-mouth" supply issues currently plaguing the industry. By holding significant stock of high-grade recycled paperboard, we ensure that our production of tape cores and carpet tubes remains consistent, even when the global shipping lanes are blocked, or European producers are non committal about prices and volume.

• Global Partnerships, Local Reliability: We continue to work with the best partners from around the world, ensuring that the fibres we use are the highest quality available. Our strategic reserves mean we can wait out the "peak volatility" of shipping spikes without compromising on the quality our customers expect.

A Measured Approach: It’s Too Soon to Say

While the world is "charging" forward at a breakneck pace, JPT is taking a measured approach. It is too soon to say exactly what will happen with core prices today. Knee-jerk reactions rarely serve the long-term health of a supply chain. By leveraging our warehouse capacity and financial strength, we are acting as a buffer between our customers and the chaos of the European TTF markets and Middle Eastern conflict.

2 Questions to Ask Your Current Supplier

If you aren't currently working with JPT, you need to know if your supply chain is built on sand or solid ground. Ask your current supplier these two critical questions:

1. "What is the exact volume of your UK-based stock of raw materials right now, and how many weeks of production does that realistically cover if global shipping remains disrupted?"

   
   

2. "Given the spike in interest rates and energy costs, what is your current level of financial stability and debt borrowing? Are you positioned to absorb these market shocks, such as increased interest rates, or will your debt obligations force you to pass every penny of volatility directly to us?"