According to multiple sources, Packaging Corporation of America is set to increase its containerboard prices $140 per ton effective September 1. This would mark the third containerboard pricing increase in North America in just seven months.
This amount is double what producers typically announce for increases, with numerous industry participants and observers calling it unprecedented and shocking.
If fully implemented, that means linerboard prices in North America would rise by $240 per ton in only seven months, in what is likely the largest, fastest increase ever. The last swift linerboard price increase run was during COVID when prices rose four times in a row by a total of $220 per ton in 2020-2022.
According to Packaging Dive, Memphis, Tennessee based International Paper (IP) has also announced an $80 per ton increase on containerboard prices to take effect September 1.
Analysts believe that similar to PCA’s, IP’s increase is driven by rising costs for inputs including recycled fiber, freight and electricity.
Fastmarkets reported that the tightness stems from a major and unprecedented capacity retirement of 10 percent in the US and a total of 3.9 million tons, from February 2025 through March 2026.
Despite several companies’ executives pointing to some containerboard market improvements over 2025, analysts have cautioned that the sector, and packaging overall, is not experiencing a robust recovery.
“It’s hardly a time to celebrate the sector. While the stocks have risen 5-10 percent since May, demand remains lackluster and volumes weak,” said George Staphos, Bank of America Securities analyst, in a July 14 memo about the overall paper and packaging sector. “Containerboard is okay, but that’s because of pricing strength rather than demand.”
