Kraft Linerboard Price Increase

Longivew Fiber, a smaller producer (#12 at 600,000TPA), just announced a $50/ton price increase for shipments after January 1 on kraft linerboard and corrugating medium. The industry requires International Paper and Smurfit-Stone to follow for this new price level to occur. The mills have been disparate for a price increase because fiber costs are up and the black liquor credit will be gone. The challenge is soft demand - October box data show continued weak volumes.
Shipments were down 5.8%, although inventory down as well.