Unbleached Kraft Board Continues Improving

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North American unbleached kraft board list prices in July rose $10/ton to $865 - $925/ton, following the $30/ton June price increase, according to Wilde. At current levels, prices are +4.7% y/y. The $40/ton increase over the last two months is the first price increase since August 2008. The current price increase is driven by strong beverage demand and a pick-up in back-to-school activity. This increase will help in restoring the spread with coated recycled board prices, which rose in September 2009, January 2010, and April 2010.