Improved Order Backlogs, Operating Rates, Demand Push Year’s Third CRB Initiative

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As reported in earlier editions of Over the Wire, RockTenn and Norampac, two of the three largest coated recycled board (CRB) producers in North America, are both out with $40/ton price hike initiatives for early August. Graphic Packaging and PaperWorks this week announced similar price hikes on CRB (see items below in this edition of Over the Wire). Wilde points out that if successful, this would be the third hike of the year, after prices rose $30/ton in January and $35/ton in April. The recent price hike is driven by improved order backlogs, higher operating rates and an overall improving demand, Wilde explains.. However, with domestic OCC prices down $59/ton since March 10, CRB producers may find it difficult to pass-thru the latest price increase, he adds.