Tuesday, December 08, 2009

Containerboard Market Update

As Coy Paper has previously reported, all the major containerboard producers have announced a $50/ton price hike in the East and $70/ton in the West. This is a difficult increase for most converters to absorb, given the poor economy and lack of orders for packaging. This recent price movement is a result of large supply reductions. Coy Paper has reported on closures such as International Paper and West Fraser shuttering 1.8Million tons, a better demand for exports, and the expiration of black liquor credits - all placing pressure on mills for this increase.
A recent report outlined the black liquor credit could have assisted mills cost by as much as $180/ton.

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