High paper prices, poor availability: corrugated board industry still under pressure

The companies organized in the Verband der Wellpappen-Industrie e. V. (VDW) rate the current price level for corrugated base paper as much higher compared to the same time last year. At the same time, a large majority rates the availability of corrugated base paper as poor or even very poor, according to a recently implemented VDW member survey.

"All VDW members participating in the survey rate the current prices for corrugated base paper as much higher compared to the same time last year - this unanimity of information clearly shows the massive pressure felt by the industry as a whole," notes VDW Chairman Dr. Steffen P. Würth. Asked for a more precise assessment of the extent of the cost increase, around 62 percent of the companies stated that costs had climbed by at least 40 percent at the time of the survey compared with the previous year.

VDW member companies also see themselves in distress when it comes to the availability of the most important raw material for their packaging: Overall, a clear majority of around 86 percent of survey participants rate the current availability of corrugated base paper as poor (around 43 percent) or even very poor (also around 43 percent). Only about 14 percent still rate availability as satisfactory at the moment.

"Our survey results also bring to light that the tight raw material situation is not without consequences for the corrugated board industry and its customers," warns the association chairman. Within the scope of the survey, around 38 percent of the participating companies had reported restrictions on a medium scale in production and delivery capability. Some 24 percent even reported severe problems. This is confirmed when looking at the stated delivery times: just under ten percent stated a delivery time of four weeks. Around 86 percent stated delivery times of more than four weeks. In addition, the VDW has received feedback from its members that delivery times are currently as long as eight to twelve weeks.

"For our industry, this status quo is bitter because we were able to prove ourselves as a reliable partner even during pandemic times when demand increased by leaps and bounds," explains Würth. "Even now, the corrugated board industry is doing everything it can to deliver as quickly as possible. However, the extremely challenging raw material situation often leaves us no choice at the moment but to appeal to our customers' patience," Würth says. However, it is precisely this circumstance that is exacerbating the pressure on the corrugated board industry. Because price adjustments, which the drastic cost situation would basically require, are all the more difficult to communicate in the case of longer delivery times.

The VDW implemented the written member survey between June 16 and 23, 2021. 21 of 32 association members took part.