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The Demand For Cartons Is Strong, And There Is No Need For Sales. Why Should European Paper Factories Try To Stop The Price Increase?
Apr 17, 2018

European market the carton capacity shortage, the downstream demand, but is like this, the paper mill is also restraint, rational pricing as far as possible, because in the European market, many manufacturers are vertically integrated, cartons paper mill need to downstream enterprises have enough time to pass the price has increased, more importantly, the paper mill wants to avoid the carton become uncompetitive packaging materials, so as to avoid is replaced by other packaging materials.

European cartons are in short supply and demand is strong.

When it comes to the paper packaging industry, UK manufacturers can look to the KnowItAll market research team for detailed reports to help them identify turning points, such as where is all the new capacity?

When does the box board price start to fall?

How much new capacity will cause too much capacity?

In Europe, as a whole, there is still not enough box paper available, and prices are expected to rise between June and August.

And this year Europe will need about 1m tonnes of extra carton capacity:

Burgo installed the new PM in Avezzano, Italy.

Leipa will start a new paper machine in Germany's Schwedt in the next few weeks.

The PM, which is being rebuilt at the Madrid plant, is expected to begin production at the end of the second quarter.

But in the long run, the next two to three years...

The current box board deficit looks like a potential surplus, with about 32 million tons of paper capacity in Europe, and about 5 million tons of new capacity in the future.

According to the European economic growth rate, the future European box board market will even be oversupplied.

Before you rush to sell shares in paper company, it is important to note that in recent years have introduced additional production capacity 4.5 million tons, it is still not enough to meet demand, if you have paper stock, so your stock yet pay rich dividends.

Why are European paper mills still holding back when demand is high?

Another surprise is that despite the current European corrugated board paper supply shortage, but the paper maker pricing is limited by a lot of, because in the past 20 months, manufacturing base paper prices only rose by 50 to 70%.

Surely someone will ask a very interesting question, why doesn't the paper factory raise the price every month?

Frankly, the paper mill is creating a sell products, not sorrow so why didn't like the domestic market, directly every month even every week, paper prices are pushing plateau?

But for the entire European paper industry, pricing is very rational and restrained.

Actually in the European market, many manufacturers are vertically integrated, paper cartons need to downstream enterprises have enough time to pass the price has increased, however, more importantly, the paper wants to avoid the cartons to become uncompetitive packaging materials, so as to avoid are replaced with other packaging materials, or to avoid some companies broadly packaging reinvent from the supply chain.

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