In the UK, with a new round of paper price increases, some buyers try to avoid the recent price increases,others try to find alternative goods from globally. However, the two attempt negative prices in the market on the way is of no available,because of we do not have enough supply of paper. Further decline in the supply chain, both carton plants, cardboard plants and end users are know that inflationary pressure is irresistible. Since the fall of 2016, the price of paper cardboard has risen to about 40%, and an increase of about 50% soon according to expert opinion.
Despite soaring prices so far, demand for cardboard continues to outstrip supply. Last week, stocks of European stocks of recycled cardboard fell to 596,000 tons, down 7% over the same period in 2016. This means that paper prices have risen by 40%, but the industry demand is still not enough. Krat paper is very populared by packaging manufacturers, because many factories have paper bag and paper box orders waiting for material like paper board and kraft paper, but there dont have enough paper supplier in market limit times.
In the United Kingdom, the additional cost incurred by the escalating wages of nationals and the Brexit inflation associated with imported commodities have caused many stakeholders' serious concerns and caused many losses. As a result, some carton factories have taken a conscious decision to reduce their customer base by re-integrating their portfolios while investing heavily in productivity-enhancing machinery. Corrugating industry is suffering a shock, will result in substantial unit cost increase and further integration.
Looking ahead, another round of cardboard prices seems to be clear in October / November. Over the past three years, this time increased by about 25 pounds / ton. Optimistic voices hope that in July this year so much growth, so that in the fourth quarter the market peak will increase. As demand rises further, many manufacturers are still worried about meeting demand in the fourth quarter, and prices appear to be more likely to rise again. In the fourth quarter of 2017 and the first quarter of 2018, four new boardboard machines will be introduced, which will greatly reduce the balance between supply and demand.