Price of testliner falls due to oversupply and lower feedstock prices

Gurjit Degun
22 June 2014

☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily 

23 June 2014 | Gurjit Degun

Testliner, a product commonly used in the packaging industry, has seen a price drop of 4 per cent in Europe over the past two months.

Data from Mintec shows that this follows an “almost constant upward trend” since February 2013. Testliner is made of recycled paper and is used during the manufacture of corrugated paperboard.

The price of 140 grammes – 150 grammes of brown testliner in Europe is currently €461 (£367) per tonne. But in January 2013 it was €419 (£334) per tonne, the lowest point in the past 20 months.

In February 2013 the price was €420 (£335) per tonne, and in April 2014 it was €475 (£378) per tonne. The peak price was €480 (£383) in December 2013 through to February 2014.

“While demand has remained stable, the fall in prices has mainly been due to an oversupply in the market and lower feedstock prices,” said Mintec. “Feedstock prices declined due to reduced demand from Asia. Furthermore, greater supply from Asia into Africa and the Middle East, has increased competition and resulted in less attractive European imports into the region.”

Mintec predicted the price will drop further as buyers increase pressure on suppliers to reduce the price, as they are aware of an oversupplied market.

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE