Kraft Paper Prices on the Rise

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North American list prices on extensible sack kraft rose $30/ton in July to $1,010 - $1,030/ton, Wilde reports. While some producers implemented the full $60/ton price increase in July, other producers are passing through the increase in two tranches of $30/ton each in July and August. Overall demand appears strong (mill backlogs of 2-3 months) with reports suggesting some customers are on allocation. Producers have also announced price increases for August. Kapstone has announced a $60/ton price increase on bag and sack grades and $40/ton on unbleached kraft multiwall, converting kraft, and specialty kraft grades, effective August 1. Delta Natural kraft also announced a similar price increase, effective August 7. Georgia-Pacific announced a $50/ton increase on all unbleached and bleached kraft paper grades, effective August 1.

Prices are also rising outside of North America, Wilde notes. In Europe, Mondi recently announced a EUR 100/metric ton hike for all sack kraft grades, effective August 1. Overall sack kraft paper demand remains strong due to robust economic growth and large infrastructure projects in the Middle East, Africa, and Asia, he says.