According to multiple sources, additional containerboard price increases are to be expected this coming June. This next round of increases include Smurfit Westrock, International Paper, Georgia-Pacific, and Packaging Corporation of America all raising prices.
International Paper will post a $70 per ton increase, while Georgia-Pacific and Packaging Corporation of America are each pursuing $50 per ton hikes. The announcements follow a $70 per ton increase implemented in March.
Producers are pointing to tightening supply conditions, higher input costs, and a recent rebound in demand to support the June increases. In the weeks leading up to the announcements, analysts cited an “unprecedented” shift in demand, along with rising energy and freight costs, low customer inventories, and ongoing margin pressure.
Demand trends shifted notably as the first quarter progressed. Box demand was soft early in the year, impacted by severe winter storms and cautious consumer spending. By March and April, however, demand strengthened significantly.
Executives attributed the rebound to a mix of factors, including the delayed impact of earlier capacity closures, normal seasonal patterns, and low inventories across the supply chain. Some also acknowledged that pre-buying ahead of announced increases may have played a role, though most downplayed that effect.
The June increases come amid a more volatile backdrop than earlier in the year. Geopolitical uncertainty and unsteady consumer confidence weighed on Q1 expectations, though Improving conditions late in the quarter and into early Q2 shifted that outlook. Analysts now see potential for further pricing movement later in the year if current conditions hold.
