Cardboard Boxes Will Get Cheaper

Yes, cardboard boxes will definitely get cheaper. This is not a marketing gimmick by packaging material suppliers. In fact, this is the result of the drop in price for Kraft innerboard.

For those of you who are not aware of Kraft innerboard, this is the material that is used to produce containerboards which further get used up for creating cardboard boxes. Industry publication Pulp & Paper Week had estimated that the prices for the containerboard will fall as much as $20 per ton. This is a serious drop as compared to the levels which were present in December, 2015.

Not only has the price fallen just once, it is being speculated that the prices will continue to fall and eventually the price drop will reflect on the product of cardboard boxes where the prices will quite less. A reduction in the price of cardboard boxes around the globe will have a direct impact on logistics, shipping and courier. Less charges for corrugated boxes will obviously reduce the shipping costs and will also make it easy for new ecommerce businesses and startups to send out their products safely.

‘The linerboard price drop is a surprise given commentary on stronger-than-expected December box shipments, analysts at Citigroup Inc. said in a note. Still, supplies have been increasing, and the competitiveness of exports to Latin America have suffered from the strength of the U.S. dollar”, BMO’s Wilde said. “We’ll continue to see pressure on containerboard pricing because demand has been fairly static," Wilde said Monday in a telephone interview. “It will have an impact on earnings with these companies."

If the current statistics were to be considered, then there could be a further drop of $10 per ton in February. All in all, the drop in price will benefit the customers and shipping companies. However, it might not be good for the packaging material suppliers as the costs will come down. There is a bleak possibility that the reduction in prices might lead to an increase in demand for the cardboard boxes which will eventually turn out to be a winning prospect for packaging material suppliers.

Only time will reveal the direction in which the cardboard box prices go. One thing is certain – a reduction in price will definitely give a much needed boost to startups and small businesses and help them to compete effectively in the market.