Demand for kraft sacks and industrial bags from the building and construction industry picks up on CE marking issues.
After a weak business in the first three months of the year, demand for kraft sack paper recovered in the second quarter. However, industry sources stressed that the peak demand period, which usually starts in mid-May, has been significantly delayed as temperatures were late in increasing this year.
Nevertheless, sack kraft paper manufacturers were satisfied with the capacity utilisation rates at the end of June. Lead times have reportedly increased as a consequence of higher order intake with deliveries of unbleached paper grades running at 4-6 weeks time.
There was no change in sack kraft paper prices in the second quarter, despite the increase in pulp prices. The market had not been strong enough to support price hikes because demand was late in picking up, EUWID respondents explained. This was also why many paper manufacturers agreed to roll over second quarter prices into the third quarter, they added.
At the end of June, German kraft sacks and bags manufacturers reported to be pretty content with their order books. Demand from the building and construction industry has seen a strong growth in the second quarter. This was due in particular to the new European Construction Products Regulation (CPR) that applies as of 1 July 2013 and guarantees that only sacks marked with the CE label may be sold, it is learnt.