Good demand and order books are supportive of producers plans for additional price hikes as of May, market players say.
Suppliers of white lined chipboard are implementing higher prices for deliveries of GD board in Poland. These new prices mostly apply to deliveries from the middle of March or 1 April onwards.
With recovered paper costs still soaring, key suppliers announced another mark-up to take effect in the second quarter. In some cases, these hikes are being sold as a "temporary fibre surcharge" that is not up for negotiation and applies to deliveries from May onwards. In other instances, they were characterised as a second instalment to wrap up the previous price hike. Some producers also said that they were instituting a fresh price hike. This is said to bring the total increase in GD board prices to €55/t in Poland.
Extremely long lead times at times and consistent hikes in cartonboard prices are making life hard for packaging producers. Buyers in Poland conceded they had grudgingly taken note of these latest plans. They do not have much leeway to negotiate. "We are playing for time, but positions are hardened," one converter said.
This article is an excerpt from EUWID's quarterly report on the paper and board markets in Poland.
Find the EUWID Price Watch Poland for the first quarter 2021 in EUWID Pulp and Paper issue no 15/2021, which will be available to our e-paper and print subscribers as of 14 April.