Containerboard Supplies Tightening
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Flooding on the lower Mississippi River may help to further tighten containerboard supplies, according to Wilde. IP is reportedly preparing to close its 1,600 tpd Vicksburg, Miss., linerboard mill. Added to high maintenance downtime in the second quarter and stronger box shipments, this could produce greater-than-expected drawdown in containerboard inventories, setting the stage for a third quarter price hike, Wilde notes.
April containerboard prices were reported to be flat. "Sadly, figuring out what constitutes ‘the price' has become difficult with publishers reporting three (or four) different prices for one commodity," Wilde says, adding that reliable trade sources have been reporting increased discounting in the box market. "First quarter earnings results seem to bear those reports out, suggesting that we ought to focus more on producers' bottom lines rather than the trade papers."
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