Paper Producers Raising Prices
In a few weeks packaging materials will become considerably more expensive in Europe and thus in Hungary too. Producers will raise prices in two stages.
The European packaging producers will raise prices in all sectors from June, and this will spiral onwards into Hungary as well. Cardboard prices will increase by ten percent, while sack, bag and corrugated paper prices will rise by 11-13 percent. This means an approximately six-percent cost increase in the finished product.
˝Base paper prices remained stable last year and even dropped slightly early this year, however, in the wake of this recent change paper-based packaging producers fear a new price explosion˝ - announced the National Packing and Materials Handling Alliance (CSAOSZ) - ˝…as there is an uncanny resemblance to the dramatic price rise that took place in 2000.˝
Since the sack, bag and box manufacturers are still licking their wounds from the losses of two years ago, there is no reason to assume that they will not offset the extra costs in their prices. This was confirmed by András SZOKE, Sales Director of Dunapack´s packaging paper division in response to the paper´s inquiry. As he said, they have already begun negotiations with their customers, and intend to implement the price rise in one or two stages to compensate for the extra costs. He added - ˝This was forced by economic factors, as deteriorating profitability must be countered and functionality maintained. It is impossible to make up for a base paper price increase of such magnitude through streamlining. The most that could be achieved in that area is one or two percent. The unfavorable trends were first noticed three or four weeks ago; first the price of cellulose crept upwards, only to be followed by that of waste paper. Dunapack, by the way, obtains its base material from the nearby states of Germany, the Czech Republic, Russia, and Slovakia, as well as from Hungary.˝ The Sales Director added that plastic packing material prices will also go up, since oil prices have also been raised. |
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