VDW: Energy crisis has also had a considerable impact on the corrugated board industry - Association of the Corrugated Board Industry draws up interim balance sheet for 2022

"It is already becoming apparent that 2022, with its drastic price increases for raw materials and energy, has also had a considerable impact on the corrugated board industry", explains VDW Chairman Dr. Steffen P. Würth. In the period from January to August, the working-day sales volume of the association's members was 32.759 million m2 of corrugated board, which corresponds to a minus of 5.1 percent compared to the same period last year. It is true that, among other things, the good order situation at the beginning of the year contributed to the VDW's average revenues rising by 17.1 cents/m2 to 79.9 cents/m2 from January to August 2022. However, Würth makes it clear: "This positive trend in average revenues by no means compensates for the dizzying price spiral to which our members were exposed for many months in terms of the raw material paper and energy supply."

The average price level of corrugated base paper calculated by the VDW climbed by a further 11.2 per cent in the second quarter of 2022 and then fell slightly by 2.9 per cent until October. "However, this still left the average price of corrugated base paper in October 80.1 per cent higher than in September 2020, the last low point in the price curve. The cost pressure has thus continued at an extremely high level," explains the VDW chairman. In addition, the drastic rise in energy prices had acted as a burdening factor on the corrugated board industry. According to the Federal Statistical Office, the price of natural gas for delivery to industry in August 2022 was 264.9 percent higher than the cost level in August 2021, while the price of electricity for industrial consumers with an annual consumption of at least 625,000 kWh was 247 percent higher in August 2022 than in the corresponding month of the previous year.

In view of the continuing high cost pressure and a cooling overall economic development, Würth concludes: "The corrugated board industry has not been able to make full use of its existing capacities as a powerful supporter of supply chains in the year to date - although sufficient packaging material would have been available. A climate of uncertainty caused by Russia's war against Ukraine, which has been going on for months now, and the resulting energy crisis have generally caused demand to fall. At the same time, adjusting our own price levels remained a challenge - as our industry was not able to pass on the massive cost increases in its most important raw material, paper, and in energy supply to the decreasing industries to the necessary extent."