Talks on higher prices for recycled cartonboard yielding first results in Germany and Italy

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Manufacturers report higher prices for GD and greyboard but only for volumes not covered by contracts. In the case of quarterly contracts prices are said to go up for deliveries as of April.

Cartonboard manufacturers were partially successful in increasing prices for GD and greyboard on the markets in Germany and Italy. They are citing high raw material prices and cost increases for energy and transport, as main factors fuelling the price hike.

However, the last word was not said on the cartonboard prices as some negotiations were still in progress in the final week of February. In Gemany, manufactures feel that they are in a favourable position to negotiate sustainable price hikes thanks to good capacity utilisation and demand. In the case of greyboard, German mills are reporting especially long lead times. Suppliers in Italy were not always satisfied with the demand situation, even though capacity utilisation improved as of recently.

Some buyers in Italy are are still doubtful about the success of these price steps. The price increase would also have to be consolidated, but the economic situation and thus the demand situation on the Italian market are too weak for that to happen, they say.

This article is an excerpt from EUWID's report on the cartonboard markets in Germany and Italy.

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