Signs are pointing to rising prices in many parts of the British paper and cartonboard market in June.
Sustained strong to very strong demand and hefty recovered paper costs are still the main factors driving this trend in the packaging sector. Corrugated case material and cartonboard prices increased again as a result. Recovered paper prices also climbed in June amidst limited collection volumes and healthy demand from Asia.
Even though consumption of woodfree printing and writing paper and publication paper is only gradually improving as Covid-related restrictions are lifted, manufacturers are reporting well-filled order books due to factors including capacity closures that have already taken place and commercial downtime. With prices at historically low levels and raw material costs high, publication paper producers are seeking substantial price increases from 1 July onwards. Quite a bit of evidence suggests that they will manage to institute at least a large portion of their plans. The fine paper market looks set to see additional mark-ups in June or July after initial increases in April.
This article is an excerpt from EUWID's report on the UK paper markets in June.
Find the EUWID Price Watch UK for June in EUWID Pulp and Paper issue no 25/2021, which will be available to our e-paper and print subscribers as of 23 June.