Tuesday, December 22, 2009

Will the Increased Containerboard Price Stick?

Pressure continues to mount for producers of container board after all the major North American manufactures announced the $50/ton price hike in the East and most producers are pushing for $70/ton in the West.

Demand continues to be weak – slow economy means less goods purchased and therefore, box volumes fell 12% year to date through November. Most buyers are trying to push back on price increases.

However, given the large supply reductions (recall our earlier blog that International Paper, Smurfit, and West Fraser will shut off 2.7Million tons) perhaps the price increase has a chance.

4 comments:

Anonymous said...

Although I am sure the buyers need to fight this increases - the paper industry needs this pop just to survive long term. Without assistance such as tax credits as well as reduced demand - this spells trouble for the producers.

Anonymous said...

Agree, the producers need this increase - but the box converters also need to offer reasonably priced boxes or this industry will decline. Difficult economy....indeed!

Anonymous said...

Amiable post and this mail helped me alot in my college assignement. Gratefulness you as your information.

Anonymous said...

Sorry for my bad english. Thank you so much for your good post. Your post helped me in my college assignment, If you can provide me more details please email me.