VDW: Unprecedented cost increases diminish the corrugated board industry's interim balance sheet for 2021

"The good news is: in terms of working-day corrugated board sales, VDW members achieved an increase of 7.6 percent in the first quarter of 2021 compared to the first quarter of 2020. In the second quarter of 2021, growth of 10 percent was even recorded compared to the corresponding period of the previous year. Our industry has thus once again demonstrated its capabilities under extremely challenging overall conditions," explains VDW managing director Dr Oliver Wolfrum. However, the positive trend in sales is overshadowed by bad news: an unprecedented cost explosion on the raw materials side is putting an entire industry in distress. "The price of waste paper-based corrugated base paper, which is particularly important for our industry, has climbed by 62.3 per cent from September 2020 to October 2021," says Wolfrum. In terms of the overall price level for corrugated base paper, in the calculation of which the VDW includes all grades on a weighted basis, an increase of 56.3 percent had to be recorded from September 2020 to October 2021. For individual paper grades relevant to the industry, the curve points even more steeply upwards. For example, according to data from EUWID (Europäischer Wirtschaftsdienst GmbH), corrugating medium increased in price by a whopping 83.3 per cent from September 2020 to November 2021.

Growing energy costs also continued to prove a significant additional burden, Wolfrum said. According to the Federal Statistical Office, there was a price increase of 233.5 per cent for natural gas and 116.6 per cent for light heating oil here from September 2020 to October 2021.

"If you take a look at the revenue side in comparison to these ever-increasing prices, it becomes more than clear that corrugated board manufacturers are only benefiting to a limited extent from the continuing high demand. The average revenue per square metre of corrugated board has only increased by around 13 per cent between September 2020 and August 2021," emphasises Wolfrum. "The impact of the cost explosion, which is largely due to the rise in raw material prices, is hitting the corrugated board manufacturers in particular, who are unable to communicate this to their customers to the extent that is actually necessary. How long our industry will be able to absorb this massive pressure is questionable - especially since there are no signs of any easing on the market in 2022," concludes the VDW managing director.