What’s happening to food packaging pricing?
Kraftliner prices remained in the same range in March 2019 despite the small price increase in December. High availability of material overseas and a strong foreign presence of suppliers, coupled with constant demand contributed to this stable trend.
Cartonboard prices remained stable over recent months. According to market participants, Brexit uncertainty is raising concerns over likely price increases from April for UK customers. This has helped to stimulate demand during the first two months of 2019, but high availability of GD material has maintained prices at 550 GBP/MT on average.
Aluminium alloy prices have rebounded following the decreasing price trend in 2018. Strong global aluminium demand is forecast for 2019, mainly due to the Chinese government announcing expansion plans for both the manufacturing and construction industries, pushing prices up. Higher energy costs and supply cuts of alumina have added further pressure on prices.
PET prices have sharply declined between October and January. High US shale crude oil output in Q4 2018 caused crude oil prices to fall and consequently, as a key feedstock in PET production, PET prices fell. Furthermore, lacklustre demand for PET following the Christmas period weighed down on prices. However, OPEC cuts implemented in January have started to squeeze crude oil stocks, seeing PET prices rising slightly since January. Prices are expected to rise further as the spring and summer seasonal demand for plastic PET bottles picks up.