The explosion in the cost of corrugated base paper is further exacerbating the situation in the corrugated board industry and putting manufacturers under increasing pressure. This is reported by the companies organised in the German Association of the Corrugated Board Industry (VDW).
As the latest figures from the Euwid business service show, the price rally that has been underway since the end of 2020 picked up speed once again in the middle of the year. According to the figures, corrugated board manufacturers had to pay an average of across all varieties pay an average of 40.1 per cent more in June than in September 2020.
The predominantly used recovered paper-based grades have even increased in price by 60 per cent in the same period. In addition, there is a drastic shortage of raw materials in almost all sectors of German industry, which is also leading to long delivery times in the corrugated cardboard industry.
"The gap between drastically rising costs and falling revenues is putting our member companies in an economically precarious situation." Dr Oliver Wolfrum, VDW-Managing Director.
According to the VDW the high demand for corrugated board packaging and the associated seller's market on the part of corrugated base paper suppliers No easing of paper prices in the foreseeable future are expected. Paper price increases of 20 euros per tonne have already been announced for August. Discussions with customers are currently running at a correspondingly high level.
Source: VDW
