European Containerboard Producers Increase Prices

 

According to Davy Industrial and Transport Monthly, Davy Research, Dublin, Ireland, European producers have now successfully implemented a EUR 30/metric ton increase in both kraftliner and recycled containerboard, with a further EUR 20-30/metric ton increase likely in the coming weeks. They report a significantly increased probability that these increases will be sustained throughout the rest of the year. 

The report also says there is a good chance the increases will remain indefinitely sustained, due to an expected stability in U.S. export prices. According to the report, margins on exports for U.S. producers have collapsed over the past 12 months and now leave little room for error. In this environment, they believe cuts in capacity utilization are more likely than any further reductions in export prices as a means of dealing with excess U.S. inventories.