FOEX: Paper packaging prices in Europe mixed; containerboard grades see increased raw material costs, weakening Euro, recovered paper prices narrow yet remain up

Kendall Sinclair

Kendall Sinclair

Mar 13, 2012 – FOEX

HELSINKI , March 13, 2012 (press release) –
Containerboard Europe – The cost pressures were evidenced in the North American linerboard business with another 5 US dollar hike in the OCC prices. Activity has remained relatively good through January-February and both box and corrugated medium price hikes have been announced from April 1. In Europe, raw material costs have turned to a fairly clear increase since February. Consequently, the containerboard producers have announced considerable price increases to be effective from Feb-Mar, for both recycled and virgin fibre based grades even if the demand pull is not the greatest with the struggling general economy of the region.

The price quotes received by us were mixed this time as both higher and lower prices were registered, depending on the market. Also the currency movements had a mixed impact on our indices this time as Euro weakened against the USD by 0.2% but strengthened by about 0.4% against the weighted basket of the non-EMU currencies. The PIX Kraftliner index retreated by 1.05 euro, or by 0.2%, and closed at 512.87 EUR/ton. The PIX White-top Kraftliner index value fell by 3.07 euro, or by 0.4%, and closed at 758.36 EUR/ton. For Testliner 2, with the stronger Euro, the index dropped by 1.58 euro, or by 0.36%, and settled at 434.78 EUR/ton. PIX Testliner 3 index value rose by 3.33 euro, or by 0.8%, and landed at 418.00 EUR/ton. Our PIX RB Fluting index headed higher by 2.61 euro, or by 0.65%, and closed at 406.97 EUR/ton.

Recovered paper Europe – RCP market has continued to be impacted by conflicting price drivers. Demand for packaging materials in Europe is not strong but mills appear to have been building up raw material stocks. Increased sea freights and lack of containers have made exports to China difficult. With low regional demand for paper and board, the supply of recovered paper has been flat or has even retreated. The PIX OCC 1.04 dd benchmark moved up by 4.48 euro, or by 3.4 %, and closed at 136.20 EUR/ton. The price gaps to containerboard prices all narrowed. Against Testliner 2, the gap diminished by 6.06 euro to 298.58 EUR/ton. Against Testliner 3, the differential narrowed by 1.15 euro to 281.80 EUR/ton. Against RB Fluting, the gap decreased by 1.87 euro to 270.77 EUR/ton.

Our PIX ONP/OMG 1.11 dd index headed higher, too, but little less than OCC, i.e. by 1.15 euros, or by 0.9%, and landed at 127.36 EUR/ton. The differential of newsprint to PIX ONP/OMG 1.11 narrowed by 2.94 euro to 380.35 EUR/ton.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.