Monday, February 12, 2007

Paperboard prices may increase

Several mills want to boost prices in North America for uncoated recycled paperboard, the lightweight recycled material used for cereal and other cardboard boxes, which typically improves in sales in the spring. However, this year, inventories are still at a high 3.5 weeks of supply, making a seasonal buying pickup uncertain.

Still, Sonoco, Port Townsend, and Caraustar have proposed an increase of $40 to $50 per ton, depending on grades, effective with shipments in March. This increase is necessitated by recent and projected increases in raw material costs, led by recovered paper, as well as chemicals and starch.

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