Tuesday, February 23, 2010

Container Board Pricing and Market Update

International Paper just announced a $60/ton price increase on containerboard for shipments starting in April. We assume fellow producers will follow such as Temple-Inland, Packaging Corp, Rock-Tenn, Greif, and Sonoco. Also, Boise and Kapstone.

Although inventories for containerboard are down from historical highs for the month of January, they DID increase from January 2008. Prices have increased, but demand for boxes appears stagnate, at best. In fact, Deutsche Bank reported shipments were down over 4% and inventory rose 67,000 tons. The past price increase went through, will the April pop also be successful?

1 comment:

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