FOEX: Paper packaging prices in Europe up except for testliner 2 as brown kraftliner market has been stronger than recovered fiber-based grades; prices for recovered paper grades mixed, as ONP/OMG shows weaker performance
October 16, 2012
– Containerboard Europe – In the US, the containerboard price increase of 50 USD/ton was reportedly fully implemented in September. This was the first successful price increase effort in two years. The September corrugated box numbers are not out yet. In Europe, the situation in containerboards is not quite as strong as in the US and order books remain relatively short. The brown kraftliner market has been stronger than the recovered fibre based grades and price increases have been implemented more easily in virgin linerboard.
Last week the Euro weakened by 0.25% against the USD but strengthened by about 0.4% against the non-EMU currency basket. The PIX Kraftliner index continued to increase, this time by 2.03 euro, or by 0.35%, to 574.76 EUR/ton. The PIX White-top Kraftliner index gained more this time, i.e. 2.42 euro, or 0.3%, closing at 762.34 EUR/ton. The PIX Testliner 2 index retreated by 5 cents, or by 0.01%, to 422.28 EUR/ton. The PIX Testliner 3 benchmark increased by 3.54 euro, or by 0.9%, to 401.26 EUR/ton and our PIX RB Fluting index moved up by 3.03 euro, or by 0.8%, to 386.81 EUR/ton.
Recovered Paper Europe – The buying activity in China and in other Asia appears to have picked up a bit in the first half of October. Also there has been some improvement in export prices. In Europe, Norske Skog has finalised the divestment of its recovered paper sourcing arm Reparco. Regarding prices, ONP/OMG has recently shown weaker performance than the grades used by the packaging sector. Also, our benchmarks moved clearly into different directions. The PIX OCC 1.04 dd gained 54 cents, or 0.5%, closing at 105.05 EUR/ton. Our PIX ONP/OMG 1.11 dd index lost 1.35 euro, or 1.04%, landing at 128.25 EUR/ton.