Manufacturers say to have reaped the rewards of a relatively tight market in July and August to increase prices for brown recycled containerboard grades.
The UK market for recycled corrugated case material was apparently tight enough for prices to rise in the past few weeks. Manufacturers had announced plans to charge up to £50/t more for August deliveries and, to all appearances, succeeded in pushing through a major part of the price hike amid robust demand.
Many of the new prices are applying for paper deliveries as of 12 or 19 August, EUWID sources pointed out. Some respondents, however, said that higher prices had not been set in stone yet and that any increases would not apply until 1 September at the earliest.
Manufacturers tend to feel that the market is on their side. Insiders believe that this situation is only partially due to the traditional increase in demand seen in the run-up to price increases. Inventories had recently not attained a level that would have caused supply pressure, market players added. In the UK, specifically, insiders are also pointing to the stoppage of two containerboard machines at Smurfit Kappa Townsend Hook.