Solid bleached sulfate (SBS) board demand is soft and prices are under pressure, according to Wilde, and producers are taking downtime to keep the demand/supply in balance. July estimated prices were flat at $1,135/ton. Trade reports, he points out, suggest that order backlogs have declined and producers are offering spot deals. The $50-$60/ton hike on cupstock and plate stock hike in late-May/June does not appear to have gained much traction. "
Better than SBS and recycled grades. July coated unbleached kraft board estimated prices were flat at $1,000-$1,060/ton, Wilde reports. Demand is relatively stable, although not as strong as last year. Producers have done a good job of keeping demand/supply in balance, he says, adding that a $40/ton February price hike failed to gain traction.
A key issue for all boxboard grades is the prospective fall-out from a surge in Chinese capacity, Wilde continues. "With fiber costs down and Chinese demand having slowed, we could see a jump in Chinese exports.
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