The strong pound is putting the squeeze on board prices in the UK. Some suppliers already granted discounts in February, while others might follow suit in March, according to respondents.
The exchange rate situation was the dominant theme shaping the British board and folding box market at the start to middle of February. The strong pound Sterling was luring a great deal of the board made in the Eurozone to the UK. This increase in supply and stronger pressure on folding box prices prompted British board converters to call for more and more discounts from their suppliers to reflect the exchange rate situation. These buyers had sometimes already tasted success, which had apparently been less challenging for GC than for GD.
A few board suppliers had granted temporary discounts in February because of the strong pound, insiders said. Market experts said that other suppliers would not offer discounts until the middle or end of March. A few businesses had also tried to withstand this pressure, but experts suspected that they will not be able to escape for long.
On the other hand, the trend in the US dollar exchange rate was especially apparent for GC board: Chinese suppliers that had yet to gain a foothold but would love to sell more board to the UK regularly were holding back and wanted to wait for better timing to drive their entrance to the market.