Paper & packaging - Positive US dynamics will support European pricing efforts

Davy Research
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Corrugated demand in both Europe and the US has proved much more resilient through the pandemic. We believe structural growth drivers have contributed to this; in particular, the sharp increase in e-commerce deliveries and the nascent shift from plastics to paper-based packaging. This demand strength will help absorb new containerboard capacity increases and support industry efforts to implement the recently announced price increases in Europe. We will explore this and other themes with the management of DS Smith, Mondi Group and Smurfit Kappa Group (SKG) at our Davy Industrials Conference later today.