Mondi forecasts mixed pricing outlook

A “mixed” pricing environment, macroeconomic uncertainty and higher maintenance costs set a cautious 12-month outlook for Mondi (MNDI). Chief executive Peter Oswald detects a “nervousness” in the markets over containerboard prices, which were driven downwards after their November peak by a fall in demand in the fourth quarter, and exacerbated by customer de-stocking and pressure from imports into Europe. Fortunately for the packaging specialist, Mondi is exposed to niche markets, such as white top kraftliner and semi-chemical fluting, where prices are less volatile and currently around 2018 levels, Mr Oswald contended. Elsewhere, price increases were partly achieved in Mondi’s industrial bags division, in order to compensate for higher paper input costs, but following mid-year increases, contractual agreements limited the passing on of further cost inflation, squeezing margins as a result.