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June brings no end to price talks on RCCM market in France, market players reports delays in implementation

Chart shows price development for recycled fluting 100 g on the market in France. Price development based on EUWID research.
Source:
06 Jul 2017 − 

Talks on higher recycled containerboard prices were still underway in France at the end of June. Negotiations were evolving not only around how much more buyers will have to pay, but also over the actual implementation date of the price hikes.

Paper producers are working to introduce higher prices for brown recycled corrugated case material (RCCM) in France. Notices were sent out to converters in June that prices were set to rise by €50-55/t for deliveries as of the beginning of July.

The negotiations were mostly still underway at the end of June, because customers from the corrugated industry are not willing to accept these repeated hikes without putting up resistance. The producers, on the other hand, see themselves in a clear seller's market and want to take advantage of the opportunity to improve their margins and offset their high costs.

At the end of June it looked like as part of the announced hike could go through. But it also seemed quite possible that the increase might be delayed, for example, to the middle of the month, because the announcement was made on relatively short notice.

This article is an excerpt from EUWID's monthly report on the paper and board markets in France. The EUWID Price Watch France for June is published in EUWID Pulp and Paper 27.2017.

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