The packaging industry is set for a continued squeeze on costs, as paper prices continue to rise across Europe.
It has been a turbulent couple of years for businesses across the globe since the outbreak of the Covid-19 pandemic – and the packaging industry is no exception.
The economic shock of the pandemic has been followed by huge increases in fuel and energy costs and supply chain pressures – both exacerbated by the war in Ukraine – which have led to increased upwards pressure on paper prices.
Paper mill closures and a lack of production capacity has also been a factor affecting the industry in a number of countries – most notably the United States – whilst strikes at Finnish paper mills have impacted production capacity in Europe.
Numerous paper companies have announced price rises in recent weeks.
In April, Swedish producer SCA increased prices for white and brown kraftliner in Europe by €100 per tonne, whilst Italian producer Burgo put 15% on prices across all graphic paper grades.
At the same time, Portuguese paper producer The Navigator Company announced an energy surcharge of €105 per tonne on uncoated woodfree and packaging products in Europe, the Middle East and Africa – subject to change in line with energy prices – whilst also implementing a €120 per tonne surcharge in the United States.
Mikael Frölander, Vice President of Marketing and Sales at SCA Containerboard, attributed the company’s price rises to supply pressures in market where demand remained high.
“We see good demand in the market for kraftliner while supply is limited,” said Frölander.
“Increased costs are evident and must be managed in order to safeguard stable supply of sustainable kraftliner.”
Photo by Marcell Viragh on Unsplash.
