Analysis: Sector reels as board prices hit crisis point

packagingnews.co.uk: "Costs for board have rapidly risen over the last year as mills have pushed through three rounds of increases. Including the current third round of increases, carton printers contacted by Packaging News estimated the rise in board costs since September 2009 at between 20% and 35%, depending on grades.

On top of the high prices, lead times for ordering board have moved from three to six weeks to three months or more – sources suggest that in extreme cases, some grades are being sold now for delivery in March or April next year. Moreover, mills are reported to be imposing quotas on both individual companies and geographic regions. As a result, carton manufacturers are having to push for price increases at the same time as telling customers to plan their ordering months ahead of normal schedules."