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July 2017

Corrugated Containers and Boxboard 
We were the first publication to project the shortage of old corrugated containers (OCC) in 2015.  OCC has been supporting price 
increases on Containers and Recycled Boxboard.  A third container increase within a year is a definite possibility as e-commerce has driven demand.  A recent report suggested that Amazon was now International Paper's largest customer.
Recycled boxboard prices have been extremely volatile in Europe and Asia.

PET & OPP Films prices have been buffeted by volatile resin prices and currency exchange.  Structural over-supply will remain for the next couple of years.  Consolidation needs to continue, particularly in PET films.  

Aluminum items such as can stock and aluminum foil have been relatively stable recently following a collapse in local market premiums.  Scrap prices in Asia are very strong and have influenced can stock prices in that region. 
Primary aluminum has moved into a supply deficit globally.  Chinese supply is dominating global markets.
The Aluminum Association has initiated a trading practice review with the FTC in the U.S. regarding Chinese imports.

Tinplate prices have corrected in the past three months after a long term upward move.  There is some turmoil and aggressive pricing on the part of some second tier producers in China and Korea which has contributed to this situation.
Imports are very cost competitive into Europe and North America.  More than 20% below domestic prices and import demand is growing.  

Paper prices have been on an upward trend for the past 6-7 months, particularly in Asia.  Demand for coated paper has been declining for several years but the decline has lessened recently.  Industry rationalization, particularly in North America will drive prices over the next 12 months.  

 

Jul 1, 2017   July 2017 News
In the July 2017 edition of Pack Trax we share research developed through "deep dives" on more than 2300 packages for clients over the past few years. Cost savings potential is greatly enhanced when packaging sourcing professionals penetrate specific cost areas. Breakthrough cost savings can be achieved using the right tools and isolating opportunities on Packaging Raw Materials; Supply Plan Execution; Supplier Margins and Overhead and Raw Material Specifications. Prices for most resins appear to have reached a seasonal bottom. There are exceptions such as Polystyrene in Europe and Asia. Prices will likely stabilize for most polymers in the near term and experience upward pressure in autumn. Tinplate prices have softened in all regions on lower steel coil prices. Paper prices have been volatile in Asia and are poised to rise in North America. For a Free Trial please use the Sample Requests screen on this website.