The war in the Middle East is leading to rising energy prices and threatens the stability of the corrugated board industry. According to VDW, the sector is facing significant challenges.
The war in the Middle East is having not only political but also economic consequences, placing the corrugated board industry under significant pressure. Rising energy prices, particularly for gas and oil, threaten to further exacerbate the already tense situation. The Association of the Corrugated Board Industry (VDW) warns of the potential consequences for the sector, which is heavily influenced by medium-sized businesses and is already grappling with high raw material costs and a difficult overall economic climate.
Energy prices as a burden
The supply situation for natural gas was already tight at the beginning of 2026. An Iranian attack on a central liquefied natural gas export facility in Qatar could further exacerbate the situation, according to the International Energy Agency (IEA). On the Dutch stock exchange, the price of natural gas rose by around 30 percent to almost 70 euros per megawatt-hour. These price increases are leading to increased nervousness in the markets and have direct implications for the cost structure of the corrugated board industry.
The oil price, which has risen above $100 a barrel for the first time since the outbreak of the Ukraine war, also represents a significant burden. Increased demand and uncertainties in the oil market are reflected in logistics costs, further straining the industry.
Effects on production
The corrugated board industry faces the challenge of managing increased costs in an already difficult market environment. Dr. Steffen P. Würth, Chairman of the VDW, emphasises that the sector has already been considerably strained over the past two recessionary years. The cost of the most important raw material, paper, increased significantly in both 2024 and 2025, further exacerbating the financial burden.
Würth warns that the cumulative burden effects can no longer be absorbed in the long term. The companies in the corrugated board industry are traditionally efficient and have already overcome numerous crises. However, the current situation requires new strategies and adjustments to overcome the challenges.
Future prospects
Uncertainty about the duration and intensity of the conflict in the Middle East is causing the corrugated board industry to look cautiously towards the future. The sector relies on a stable energy supply to maintain its production processes. However, rising energy prices could lead to shortages, which would negatively impact the entire supply chain.
Overall, the situation remains tense, and companies must prepare for further turbulence, it states. The VDW is calling on politicians to take action as quickly as possible to secure energy supplies and stabilise price developments. Only then can the corrugated board industry continue to fulfil its important role as a supplier to numerous other sectors.
Source: Association of the Corrugated Board Industry (VDW)
