A few manufacturers have already made concessions on prices for recycled corrugated case material in what is said to be a "cautious first step".
Recycled corrugated case material (RCCM) manufacturers and converters reported that prices were showing a lateral movement towards the middle of June in Germany. That being said, the first rumours of price concessions by a few producers are doing the rounds. Market players told EUWID that the size of the price cuts seemed to represent a “cautious first step,” and that a second step might follow in July. It remains to be seen whether prices will decrease across the board in July. In many instances, the start of the third quarter is considered a possible starting point for a potential downward trend in RCCM prices.
In this vein, the corrugated board industry highlighted more than ample paper supply in Germany. Market insiders said paper mills kept producing in May and June when Germany had a number of bank holidays even though ordering subsided.
This is an free excerpt from EUWID Pulp and Paper's latest report on the corrugated case material market in Germany. For more info on the corrugated case material market in Germany go to our markets section.