Kraft Paper Markets Driven by Strong Demand, Tight Supply

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In the U.S. kraft papers arena, trade papers reported $40 - $60/ton increases in August, according to Wilde. Extensible sack kraft prices rose $30/ton in August (July = +$30/ton), essentially completing the $60/ton price increase. Multiwall kraft producers implemented the full $40/ton price hike. On the sack grades, producers implemented $40/ton of the announced $60/ton price increase in August. The remaining $20/ton is expected to be implemented this month. The current price increase in driven by a combination of strong demand (strong order backlogs and long order lead times) and tight supply, mainly due to the several maintenance outages, Wilde explains. Prices are rising elsewhere. In Europe, Mondi has implemented a EUR 100/metric ton hike for all sack kraft grades.