According to Mark Wilde Ph.D., Paper & Packaging analyst at BMO Capital Markets, the recent announcements by multiple integrateds of a $50/ton prince increase for containerboard is a “done deal,” with widespread reports of customers already ordering at the higher price.
“This may be one of the least contentious price hikes in recent memory,” noted Wilde. “According to the head of an extremely well-run privately held integrated, containerboard conditions are at their tightest in 25 years.”
In boxboard, Sonoco, Greif and WestRock all announced a $50/ton price hike for Uncoated Recycled Board (URB). Also in boxboard, WestRock announced a $50/ton Coated Unbleached Kraft Board (CUK) price hike. Fundamentals for CUK appear strong, as beverage markets remain healthy, noted Wilde.
Board Converting News has not yet changed the Average Containerboard Prices in the chart on page 3 of this issue to reflect the increases mentioned above. As it says in the chart, “The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue.” When a majority of converter respondents surveyed report paying a higher price and indicate what that price is, Board Converting News will adjust its pricing.
