Prices for corrugated board from German factories remain relatively stable or have decreased only to a lesser extent than for other metal products. Prices are expected to remain at the current level until the end of July.
The supply level of about 820 euros per tonne (US$938) for category 1 sites, S235, has largely remained unchanged, and no significant changes are expected. In fact, prices in the domestic market have received indirect support due to the disappearance of some import offers. In June, Germany received offers from Polish and Spanish factories starting at 800 euros. Since then, Spanish factories have raised prices, one customer told Kallanish.
He notes that the plants in northwestern Europe use relatively high production capacities, as they have loyal customers in the UK and abroad. "[Sales are carried out]even to Canada and the USA. It's hard to believe, but they[American buyers]can't get everything they need from local factories," he says.
In this scenario, businesses have little need to attract demand by reducing supply, especially given that factories in Germany and the Benelux countries take turns closing in the summer, while Italian factories are expected to be closed throughout August.
Another manager notes that domestic demand is still far from what sellers would like. But at the moment, the summer effect ensures stability, and new offers, higher or lower, are not expected before September.
Author: Christian Kehl, Germany
Kallanish.com
