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Corrugated industry grew by 2.7% in the first six months of 2017
The members of the Association of Corrugated Industry (VDW) are reporting a working day adjusted growth of sold quantities of 2.7% in the first six months of this year. In absolute numbers, producers sold 3.89 billion square meters of corrugated cardboard between January and June. This is more than 100 million square meters more than in the same time frame last year.
The second quarter (looking at it from a working day adjusted standpoint) was especially fast-growing in the sector. Between April and June, the VDW members achieved an increase of 5.6%, while it was only 0.1% in the first quarter. "The trend is going upwards and is solidifying," says VDW-CEO Dr. Oliver Wolfrum. "The great economic situation and the optimistic forecasts as well as the continuously strong domestic demand are influencing the demand for corrugated cardboard packaging positively. According to Wolfrum, more than a third of the produced cardboard is used to package foods and luxury food items.
Cost pressure is quite onerous for the companies. Since the beginning of this year, the raw corrugated cardboard, the most important resource of the sector, has been highly taxed. Although the average selling price for the cardboard has also slightly increased, "it did not change the tense situation of our members fundamentally," says Wolfrum. Market observers are expecting no further price increase for buyers of corrugated cardboard products, as producers are trying to prevent the profit situation from getting worse.
Publication date: 8/16/2017
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