Attempts to raise prices without curbing production are unlikely to be successful, market insiders say.
September prices for recycled corrugated case material in Germany were apparently carried over into October on the German market. Observers also do not expect any further attempts to increase prices. Producers of brown grades in particular say that attempts to raise prices without curbing production are unlikely to be successful. Instead, given the higher than average inventory levels, there had been a few attempts by converters to put pressure on prices. However, these have not yet had any effect, according to producers.
Paper mills continue to have good to very good capacity utilisation and demand is said to be brisk. Nevertheless, reduced exports and rising import volumes have resulted in swelling stocks at the paper mills. As well, there is some uncertainty right now about the future development of the economy and the corrugated board market. Converters are disappointed that growth in corrugated board shipments in Germany failed to meet expectations. Still, other European countries were able to compensate for lower shipments. According to industry insiders, deliveries to Poland and Czech Republic are good, while the dip seen in Spain in the early and middle of the summer has now come to an end.
