In August, as is normal for this time of year, there was a lower level of activity reported on the market for folding cartons in Germany. Simultaneously, price talks continue to be influenced by strong competitive pressure, say EUWID respondents.
Although demand is weakening and prices have been cut in some other European countries, there has been little change on Germany's folding boxboard market. As of yet, there are no signs to where cartonboard prices are heading.
Repeatedly, carton producers approached the market with low-priced offers because of their poor capacity utilisation rates, competitors complained, who noted that these prices were not high enough to cover costs given the folding carton makers’ cost structures. Nevertheless, they pointed out that board manufacturers were barely willing to compromise on prices.
GC producers say they are facing increasing price pressure. Since prices in some countries, such as Poland, have reportedly fallen, local converters are also trying to negotiate mark-downs from their suppliers. Activity levels of GC board suppliers are neither bad nor good. Short-term and additional orders could be filled quickly, while normal delivery times were said to be no longer than three weeks.
⇒ This article in an excerpt from EUWID's monthly report on the German paper market. The EUWID Price Watch Germany for August will be published in EUWID Pulp and Paper no. 36 on 5 September.
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