As everyone notices, the global impact of Covid also affects the availability of raw materials, which in turn leads to rising raw material prices. At Smart Packaging Solutions they notice the consequences as well. Johan de Neef explains. "The raw materials market is moving fast. Raw materials are currently scarce due to a combination of different factors. The global shutdown has meant that less has been produced. At the same time, the economy is now running at full speed again and the demand for raw materials is high."
Demand versus supply
"Paper prices have doubled, and the high paper price has an immediate impact on the price of cardboard as raw materials account for more than half of the cost. The price of carton packaging has increased substantially because, in addition to paper, there is the adhesive, pallets, and transportation costs. The price increases are caused by demand surpassing supply. It is unclear how prices will develop, as everything depends on the evolution of energy prices. Paper production is very energy-intensive. Depending on the demand and the supply of energy, those prices will rise or fall again," Johan says.
"Customers can rest assured in these circumstances that we will do everything we can to continue to serve you optimally. We are making every effort to keep long delivery times and higher prices to a minimum and to deliver the service and quality that people have come to expect from us," concludes Johan.
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