Strong Demand for Containerboard

The worldwide association for containerboard, the World Containerboard Organisation (WCO) of Brussels, has published statistical data (production and shipments) for the first half of 2018. According to the association, the production of containerboard increased in the second quarter of 2018 by +1.7%, leading to a growth of +1.6% for the first half of 2018. The individual containerboard grades, however, showed different developments. While recovered based paper containerboard showed a growth of +3.2% in the second quarter, virgin based papers (Kraftliner and Semi Chemical Fluting) remained relatively stable at -0.1%. Therefore, the first six months of 2018 showed an increase of +3.3% for recovered based papers, while virgin fibres maintained more or less the previous year’s level.

The growth of recovered paper based containerboard in the first half of 2018 was mainly fuelled by developments in Europe, with an increase of +2.4%, and North America (USA and Canada) with +1.7%. Besides the buoyant economical development, the start up of new capacities in these regions accelerated the growth.

The increase of shipments within the second quarter 2018 rose almost at the same pace as in the first quarter. The growth, however, was different in the individual regions (USA +2.0%; Canada +3.2%; Western Europe: +2.6%; Eastern Europe +3.6%). Only shipments to Brazil registered a decline (-2.3%).

The association says that due to strong demand, clients had to accept longer delivery times in some regions. Necessary mill maintenance had to be postponed into the second half of the year. According to the association, the outlook for the second half of the year is very positive. The economical dynamic is still on-going and some bottlenecks for shipments can no longer be excluded.

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