Containerboard Markets Competitive, Kraft Paper Tight
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Prospects for an autumn containerboard hike attempt have faded, according to Mark Wilde, senior analyst with Deutsche Bank. Key issues, he explains, are economic jitters and overhang from the IP/Temple-Inland bid. While pressure on box prices appears to have eased, the market remains highly competitive, he says.
The kraft paper market remains tight, Wilde continues, adding that producers implemented the full $60/ton price hike on extensible sack kraft. August estimated prices rose to $1,150 - $1,170/ton, +10.5% y/y. Key drivers are strong export demand and limited supply, Wilde says.
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