Containerboard Banking on Box Price Increases

Print this article | Send to Colleague

Following the announced $60/ton April price hike (the second one in four months) the containerboard focus will now turn to downstream implementation of an announced 9.5%-10% global box price increase, according to Wilde. A number of box contracts are likely to go "out to bid" as buyers test producer resolve, he adds.

The real issue, however, is tight global supplies of containerboard. Brokers are reportedly scrambling for export tonnage as producers channel available supply to domestic customers, Wilde says. March European numbers indicate signs of a cyclical recovery (shipments +4.5% on a "blended" basis, inventories were lean, and operating rates were high). On the cost side, pulpwood availability is gradually improving and wastepaper costs (mainly, OCC were down $35/ton in April).