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ECBA reports coreboard demand in 2018 still extraordinary good but high energy costs hit margins

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ECBA reports coreboard demand in 2018 still extraordinary good but high energy costs hit margins

October 18, 2018 - 10:04
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BRUSSELS, Oct. 18, 2018 (Press Release) -The Association of European Coreboard producers (ECBA) in Brussels reports that the demand in 2018 is still extraordinary good and could not be expected in that extent, neither by the producers nor by the customers. That’s the reason why producers ran through over the summer holidays and had to postpone again the necessary maintenance.

The statistics for the first 9-months are showing an all-time high for deliveries, while stocks are on the lowest level ever reported. The producers registered a high volume of orders received and there are indications that even for the first quarter of 2019 the order books are filled. The employment is also on the highest level ever observed and the companies are in negotiations with the trade unions in order to run through over Christmas.

The association is reporting that this tight situation can be observed all over Europe and the colleagues in other parts of the world are reporting similar developments.

The costs were still tight in 2018, for which reason a particular backlog still exists. The association is reporting that some improvements could be achieved, however, they all fell short of the producers expectations and are seen to be disappointing.

Despite the positive market development, the revenue situation, however, is still unsatisfactory. Especially the price increase for energy could not yet be fully passed on. Furthermore, price increases for starch and freight charges must still be mastered. Especially the Statutory Minimum Wage for drivers and the fact that 45.000 truckers are missing, have increased the logistic costs noticeably.

Therefore a price adjustment was announced last week for the last quarter of 2018.