Expect steady growth in mature market
By Staff -- Purchasing, 5/4/2000 2:00:00 AM
In what appears to be a mature market, fiber drum producers continue to report strong annual sales and steady growth.
"The market for fiber drums is strong," says Pat Griendling, product manager for fiber drums at Greif Bros., a bulk shipping container supplier based in Delaware, Ohio. "Demand for these containers generally tracks U.S. economic trends, and right now the economy is good," she says.
Buyers have many options when it comes to bulk packaging and storage. Steel drums and plastic drums offer greater strength and the option of containing hazardous materials. But bulk-container producers continue to find a market for cheaper, more flexible and easier-to-handle drum alternatives. Buyers continue to opt for fiber drums because they're lightweight, inexpensive, and come in a wide range of sizes and configurations. Even though bulk bags, which have gained favor in recent years, have made inroads, the benefits of low cost, efficient storage and easy disposal makes fiber drums ideal for open loop, or one-way distribution programs.
Prices rise slightly
While fiber drum prices are still low, especially when compared to other drum types, they appear to be rising this year. "Much of fiber drum pricing is tied to raw materials costs," says Griendling at Greif Bros. "And raw materials costs have definitely increased."
The most common materials used in fiber drum construction are linerboard, steel, and molded plastic resins. Linerboard is wrapped into a cylinder, then sealed and laminated with adhesive. Steel bands on the outside of the drum lend support to the frame, and tops and bottoms are usually made of fiber, plastic or metal.
Material costs have risen in recent months. Currently the average price of 42-lb kraft linerboard is about $462/ton, according to buyers who responded to a recent Purchasing price survey. This average price is up about $27/ton from February and up about $75/ton from this time last year when linerboard prices were about $387/ton.
The current high price of crude oil, and resultant hikes in many other raw materials have and will continue to have an indirect effect on fiber drum prices, at least for the short term. Look for fiber drum prices to increase slightly in the next six months.
Product flexibility
The benefit of fiber drums for many customers is the flexibility they provide along with the fact that they're inexpensive when compared to steel or plastic drums. They're especially useful to customers who do not wish to spend extra capital to have plastic drums custom-molded, when a fiber-drum alternative is usually available to fit a specification. If no fiber drum fits the spec, most producers also offer custom design and manufacturing of fiber drums which is still less expensive than molded plastic or steel drums.
"Put simply, there are some products that customers like to package and store in fiber drums, and these are not confined to dry products," says Griendling of Greif Bros. "Fiber drums are available with liners for liquids and semi-liquid storage and shipping," she says.
Greif Bros. offers its ro-con fiber drums, which are designed to reduce costs by improving storage efficiency. ro-con fiber drums feature rounded corners with convex sides, so the drums may be rolled. Also, they come with a telescoping fiber top cover and have an all-kraft construction, which may be recycled or incinerated for easy disposal.
In addition, Grief Bros. offers its trademarked Liquidpak and Weatherpak drums. Liquidpak drums feature various liners, including plastic and foil for liquids storage, and Weatherpak drums are constructed with thermoplastic adhesives to allow outdoor storage even in harsh weather conditions. Drum covers for ro-con, Liquidpak and Weatherpak fiber drums are secured to the drum body with telescoping fiber or lever-lock mechanisms, according to the company.
Yankee Containers, a packaging distributor based in North Haven, Conn., also offers fiber drums in a variety of configurations, including round and square drums in the volume range of 5-55 gallons. These drums may also be used for dry or liquid materials storage and come with a range of covers and linings. For instance, Yankee Container's trademarked Hex-Packs fiber drums have a hexagonal construction designed to save warehouse space. The drums are collapsible and may be stored flat when not in use. When collapsed, about 10 of these drums store in the space of one rigid 55-gal drum, according to the company.
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