☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
The price of Chinese cartonboard is continuing to fall, declining around 10 per cent since the beginning of the year.
That’s according to Mintec, which explained that the reasons behind the decline are “persisting weak demand” and high stocks.
Mintec also said that paper packaging in China has seen “considerable discounts”, and prices have trended downwards over the last three years.
It added: “Demand has been weakened further by closures of some branded companies in China, which has also led to rising stock levels.
“Capacity in the first six months of 2013 has increased significantly, with different rises seen for various grades of cartonboard, ranging from 2 per cent to 30 per cent year-on-year.”
Despite production stoppages introduced by producers to reduce high stock levels, inventories are expected to grow further.