Corrugated container producers are growing
pessimistic toward October’s containerboard price hike and pass-through to box
prices despite continued tight containerboard supply, according to a Longbow
Research survey.
According to the survey, the percentage of
respondents with a “weak” three-month demand outlook rose from 5% to 25%, while
those with a “strong” outlook dropped from 30% to 15%. Forty-three percent said
current demand is atypical, with 93% of those saying it is weaker than usual,
and that economic fears are affecting consumer behavior.
The
rest of the year will probably see a struggle between supply-side discipline
and weaker demand. If the current price initiative fails, it would then be
expected to be implemented in the first half of 2009.
For a
copy of the report, e-mail devanson@comcast.net.
Longbow Research
216-986-0700
