Higher recovered paper prices and a temporary boom in demand have led suppliers to increase their prices for GD cartonboard in Poland. Now, demand has softened again and players are wondering if the hikes will be maintained in the next months.
Leading recycled cartonboard suppliers largely raised prices for deliveries to Polish folding box companies and paper merchants in the second quarter. Manufacturers stated that mark-ups had often taken effect from 1 May in day-to-day operations, with six-month contracts containing higher prices from 1 July. Full-year agreements remained untouched.
The leading argument cited by producers was the sudden and massive spike in recovered paper prices starting in March. Demand for GD cartonboard for food packaging soared at about the same time since consumers throughout Europe responded to the announcement of lockdowns by panic-buying.
However, recovered paper prices are falling for the second month in a row in July, and experts feel that prices might return to the low level seen in the first quarter over the summer. Demand for folding boxes also steadied a little in Poland in May and especially in June, although an alarming slowdown was not witnessed. As July began, EUWID sources were discussing whether price increases for GD cartonboard would take hold on the Polish market in the medium term.
This article is an excerpt from EUWID's quarterly report on the paper markets in Poland.
Find the EUWID Price Watch Poland for the second quarter in EUWID Pulp and Paper issue no 29/2020, which will be available to our e-paper and print subscribers as of 15 July.
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