DS Smith, Burgo Group and Hamburger Containerboard have announced a price increase for their recycled corrugated case material grades as recovered paper costs are significantly going up.
The first containerboard producers are announcing mark-ups against the background of rising recovered paper prices. DS Smith has announced an increase of €40/t for its recycled containerboard grades for all new orders placed from 16 April. In the UK, the group had already announced a hike of £30/t from 8 April. DS Smith cites increasing input costs, including for recovered paper, and high demand.
Italian Burgo Group also mentioned that recovered paper costs are suddenly "skyrocketing", which is why the company wants to charge an additional €50/t for recycled corrugated case material from 1 May. The hike is to apply in Italy and on export markets.
A similar announcement has been made by Hamburger Containerboard. The Austrian company plans an increase of €50/t from 1 May as well, which is to apply to its brown, white and coated containerboard grades.
More producers in Europe are reportedly planning to follow suit, but no official announcements have been made yet.
Waste paper collections in Europe are currently on a downward slide, causing price increases especially for the low recovered paper grades, which are the ones most needed for the production of packaging.
For more information on the developments on the containerboard and recovered paper markets, read the EUWID market reports and price watches for different European countries. The next reports published in issue 17 on 22 April are the recovered paper market reports for France and Germany and the containerboard market report for France.
EUWID Pulp and Paper keeps busy professionals up-to-date on the latest news from international pulp and paper markets.
Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.