The Association of Solid Board Cartons (VVK) is sounding the alarm because manufacturers of solid board and solid board cartons are coming under increasing cost pressure due to exorbitantly rising procurement prices for raw materials, energy and intermediate goods as a whole.
Solid board and recycled packaging made from solid board are made from up to 100 per cent waste paper, the purchase prices of which have risen continuously and sharply for around a year - partly due to shortages in commercial collection volumes on the one hand and strong demand on the other. According to the Euwid business service, market observers expect for the coming months is not expected to ease., The situation is likely to deteriorate further and prices for recycled cartonboard will continue to rise.
Cost pressure also due to rising energy prices
According to VVK This also results in enormous cost pressure from the sharp rise in energy prices in recent months. According to the Federal Statistical Office, energy prices have risen significantly so far this year and were 32.6 per cent higher on average in September 2021 than in September 2020. Natural gas had the greatest impact on the year-on-year rate of change for energy, with a year-on-year increase of 58.9 per cent in September 2021. Gas prices are currently reported to have risen further.
Added to this is the general Shortage of raw materials in almost all sectors of German industry with corresponding price increases for intermediate goods, which according to the Federal Statistical Office were 17.4 per cent more expensive in September 2021 than in September 2020.
The costs of goods logistics are also rising significantly. The Prices for pallets currently 180 to 200 per cent higher than the previous year and haulage companies have announced further increases of between 10 and 15 per cent for next year.
Against this backdrop of increasing massive cost burdens in the value chain, the companies surveyed in the paper, board and cardboard processing industry expect the following according to the latest business climate survey by the Munich-based Ifo Institute Rising sales prices for packaging made of paper, cardboard and paperboard in the coming months.
Source: Association of solid board cartons (VVK)
