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Germany: threat of a bubble is growing on the cartonboard market

Dice with price inscription
Dice with price inscription
12 May 2021 − 

Market players in Germany quote lead times of up to ten weeks for recycled board and up to 16 weeks for GC board.

Lead times for all types of cartonboard and negotiations on price increases were still the hot topics among converters in Germany as May began. Lead times for GD II are quoted at 8 to 10 weeks, with greyboard taking over 10 weeks to be delivered. A few converters are reporting that any orders for greyboard are not being confirmed at the moment.

Lengthy lead times are being quoted for fresh fibre-based cartonboard, too, depending on the supplier in question. Sources are mentioning lead times stretching from 6 weeks at the low end to 16 weeks at the top end. Experts think that these long lead times run the risk of creating a bubble, as they were creating panic among buyers and fuelling additional demand.

Several sources told EUWID that buyers were placing security orders for dates far in the future because they feared that they would not be able to get their hands on material. In turn, this was inflating lead times.

This article is a part of EUWID Pulp and Paper's latest report on the packaging paper and cartonboard markets in Germany.

To gain full access to company news and in-depth market and price reports on major paper and board grades, raw materials and consumables consider subscribing to EUWID Pulp and Paper or start a three-week free trial.

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