During Late March, it was observed that the prices of Corrugated box remain stagnant which is primarily influenced by the balanced supply and demand from the downstream industries.

Asia's Packaging industry is a rapidly growing sector, fuelled by rising consumer demand and e-commerce growth. Following the Spring festival, paper mills resumed production which ensured a stable supply in the market. However, the demand from packaging enterprises and end-users was relatively cautious, leading to restrained purchasing activity. The overall Asian market remained balanced, with neither significant surges nor declines in the price of corrugated boxes.

However, the tariff increased by the U.S.  on imported raw materials, including kraft paper and recycled paper is expected to drive up production costs in the corrugated box industry. Through this, it is expected that packaging companies may raise prices, potentially affecting businesses in e-commerce, food and retail sectors which are the major downstream industries of corrugated box.

Asian manufacturers, particularly in China are expected to face reduced exports to the U.S. which leads to an oversupply and potential price drops in the country. This may intensify competition among Asian producers and shift supply chains toward alternative markets.

Meanwhile, European corrugated box manufacturers could benefit as U.S. businesses seek alternative suppliers to bypass tariffs. However, higher production costs in Europe may result in price increases for U.S. buyers.  While European manufacturers stand to benefit from increased demand, businesses on both sides will need to navigate these cost pressures and supply chain adjustments carefully.

Despite US tariffs, the Corrugated box prices remain steady in Europe, Asia and the U.S. markets. Industry experts attribute this price steadiness to stable raw material supplies, balanced domestic demand, and strategic supply chain adjustments. India and China have strong domestic production which has helped them avoid any disruption  while Germany’s industrial sector has maintained consistent demand.

Whereas in the U.S. despite this trade tension, domestic manufacturers have managed to absorb cost pressure without price fluctuation. By optimizing production processes, leveraging local raw material suppliers, and streamlining logistics, these manufacturers have successfully mitigated the immediate effects of rising costs and maintained the stagnancy in the prices of corrugated box. 

Looking ahead, ChemAnalysts expect that the prices of Corrugated Box may rise in the upcoming months due to the tariff applied by the U.S. Whereas the future price movements will depend on shifts in global trade patterns, raw material costs and evolving market demand.