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Are recent price hikes for consumables justified?
It started in earnest about a year ago with a string of price increases for coated, recycled paperboard substrates from the likes of Rock-Tenn and Caraustar Industries. Then came a second round of price hikes, this time for uncoated, recycled paperboards and tubes and cores from Sonoco and the aforementioned suppliers. Sweden's Iggesund chimed in last spring with its own price increase on SBS materials. And finally, the most recent raise by paper-based suppliers came in the past week.
Resin and film providers aren't left out of the mix. Over the past eight months, Arkema, Dow and BASF among others all raised prices for polyolefins, elastomers and resin components that impact everything from basic PE film to shrink labels and adhesive laminations.
Last fall, the inks and coatings suppliers (Flint, CRI, Sun Chemical and Michelman) also announced price hikes, some as much as 14%. The latest hit comes from DuPont Packaging Graphics and its up to 8% price increase on Cyrel® flexographic-printing products.
Are all these prices hikes for consumables justified? According to our Website Poll, 75% of you agree that, yes, they are. Obviously, package-printing and converting suppliers are under the same price pressures and experience the same cost increases as their converter customers. None of us is in charge of the price of oil, for example, and its effects on raw material and transportation costs.
The next question, of course, is how successful are you in passing along these price hikes to your CPG and/or industrial customers? Participate in the current poll on our home page for the next week before we switch over to the next step in the supply chain.
Are recent price hikes for consumables justified?
February 10, 2008
It started in earnest about a year ago with a string of price increases for coated, recycled paperboard substrates from the likes of Rock-Tenn and Caraustar Industries. Then came a second round of price hikes, this time for uncoated, recycled paperboards and tubes and cores from Sonoco and the aforementioned suppliers. Sweden's Iggesund chimed in last spring with its own price increase on SBS materials. And finally, the most recent raise by paper-based suppliers came in the past week.Resin and film providers aren't left out of the mix. Over the past eight months, Arkema, Dow and BASF among others all raised prices for polyolefins, elastomers and resin components that impact everything from basic PE film to shrink labels and adhesive laminations.
Last fall, the inks and coatings suppliers (Flint, CRI, Sun Chemical and Michelman) also announced price hikes, some as much as 14%. The latest hit comes from DuPont Packaging Graphics and its up to 8% price increase on Cyrel® flexographic-printing products.
Are all these prices hikes for consumables justified? According to our Website Poll, 75% of you agree that, yes, they are. Obviously, package-printing and converting suppliers are under the same price pressures and experience the same cost increases as their converter customers. None of us is in charge of the price of oil, for example, and its effects on raw material and transportation costs.
The next question, of course, is how successful are you in passing along these price hikes to your CPG and/or industrial customers? Participate in the current poll on our home page for the next week before we switch over to the next step in the supply chain.
Posted by Mark Spaulding on February 10, 2008 | Comments (0)
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