With sales prices going down and recovered paper price remaining high in November, paper mills are becoming more and more worried about their profitability.
Even though paper demand and deliveries have been good so far this year, recycled corrugated case material manufacturers are facing their second round of price cuts in 2016. More sporadic price reductions in September and October were followed by additional markdowns throughout the market in November.
Brown recycled corrugated case material is primarily affected, but white-top testliner producers also had to lower their prices in November at the latest. Price cuts for white-top testliner are reportedly more modest, but are well spread across the market.
Manufacturers are experiencing mounting pressure on their margins after the latest round of price decreases. Prices for raw materials, recovered paper in particular, are currently offering little relief for paper producers. Ordinary recovered paper grades become cheaper only sporadically in November and prices remain relatively high.