Interestingly, Wilde continues, each additional player seems to be boosting the rate. Last week, Spain's Europac announced a EUR 50/metric ton hike in all European markets, effective August 1. A week earlier, Mondi announced a EUR 40/metric ton hike for brown kraft linerboard and substitute grades around the Mediterranean, and indicated that hikes would be forthcoming on other grades and in other regions of Europe. The moves come amidst long-term and short-term cuts in European kraft liner supply.
This spring, Norwegian kraft liner producer Peterson filed for bankruptcy and idled a 290,000 metric tpy mill in Moss, Norway. More recently, a ruptured black liquor tank has idled Smurfit Kappa Group's 520,000 metric tpy kraft linerboard mill in Facture, France. Reports suggest that the SKG mill (one of the largest in Europe) will be out of commission for approximately one month.
The recent European moves provide incremental support to efforts by U.S. producers to raise containerboard prices in early/mid August, Wilde says. Over the past 10 days, virtually all of the U.S. containerboard producers have announced price hikes of ˜$50/ton. Since exports account for 15% - 20% of U.S. kraft linerboard production (the primary U.S. containerboard grade), rising offshore price levels should aid the effort to boost domestic pricing, Wilde notes.
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