Shares in packaging and paper group Mondi fell sharply on Monday after the company issued a cautionary outlook, citing weak demand and falling prices across pulp and paper grades. The warning rattled investor confidence in the paper and packaging sector, dragging Mondi shares to a 12-year low. The company said volumes remained subdued and selling prices declined in most grades, particularly in fine paper and corrugated segments. Citing fragile demand, Mondi described the trading environment as challenging and flagged continued weakness for the rest of the year. CEO Andrew King told analysts that demand for packaging “has not become worse, nor has it become better,” and that weakness in the fine paper market persisted. …Mondi’s warning underscores continued strain across the paper and packaging industry. Oversupply in key markets, weak industrial demand in Europe, and aggressive pricing competition are pressuring margins and volumes across the sector.