Because wood pulp is the major input for paper, rising wood pulp prices are expected to flow through to the price of paper, which IBISWorld anticipates to increase at an annualized rate of 2.1 percent in the three years to 2017. Such costs threaten profit levels for suppliers of paper-based packaging.
After rising over the past few years and climbing steeply in early 2008, market prices of most recyclables dropped sharply in the second half of last year. The price of scrap aluminum cans, for example, fell 49 percent between July and December. The price of scrap paper fell 52 percent in the same period (see charts below).
Latest price of paper cups - buy price of paper cups
are a popular packaging product used for a variety of applications, such as shipping and storing consumer goods and industrial tools and equipment. In the three years to 2017, IBISWorld forecasts the price of corrugated boxes to increase at an annualized rate of 3.0%. The rising price of paper, a key input in manufacturing corrugated boxes, will force operators to increase box prices to maintain profit margins. With growing overall demand for corrugated boxes stemming from consumers and businesses alike, suppliers will be able to raise prices without risking drops in demand.