Parer prices increasing!
Paper prices continue to rise in the first quarter of 2018 forcing the corrugated market to seek recovery for the 4th time in 18 months.
The main contributing factors are:
- The exchange rate has fallen post Brexit and as large proportion of paper is imported from Europe this has affected the base cost of our UK plants.
- Recycled container-board is in tight supply across Europe.
- Supply and demand from South America and china is picking up all Europe's excess stock.
What does all this mean to Cumberland Packaging?
Whilst our investment program has streamlined our efficiencies and we have managed to absorbed increased costs in both direct Labour ( which is expected to raise by 40% in this parliament)and various overhead increases the paper increases, and tight supply chain have regrettable left Cumberland and our industry seeking a 9% price increase from all deliveries after the 1st March 2018. I The supply chain remains extremely tight heading into 2018 but we can assure all our customers of continuity of supply in these demanding times.
Attached are our official increase letters supported by a Market update as well as the increase letters from our sheet-board suppliers.
|Information regarding the Latest 2018 Board Increase||Percentage||Board Mill||Our Increase|
|Price Rise Briefing 2018 >>>>>|
|Price Rise March 2018||9%|
|Information regarding the Latest 2017 Board Increase||Percentage||Board Mill||Our Increase|
|Price Rise September 2017||7.5%|
|Price Rise Briefing April 2017||>>>>>>>>>>>>>>>|
|Price Rise May 2017||9.5%|