C’board & Boxboard Update: Domestic C’board and Boxboard Flat; C’board Prices Gearing to Increase in June

Research evidence excerpt

C’board & Boxboard Update: Domestic C’board and Boxboard Flat; C’board Prices Gearing to Increase in June

customers are pushing back against the board increases

in fear of losing large customers, most seem to believe the June increase will be

implemented supported by stronger demand and higher costs. In that regard, some

suggest that the current $50/ton of net pricing implemented this year, which marked

partial implementation of the largely $70/ton increase announced prior to the onset of

the Iran conflict, hardly had an impact in offsetting rising costs, necessitating the follow-

on June increase.

Overall, 80% of kraft linerboard buyers and sellers reported unchanged pricing vs.

last month while 20% reported higher pricing. In recycled linerboard, 60% reported flat

pricing, 20% reported higher pricing, and 20% reported slightly lower prices. In medium,

60% reported unchanged pricing, 30% reported lower, and 10% reported higher pricing

vs. April.

On the export front, pricing to Southern Europe increased €10/MT, pricing to Mexico

increased $20/MT, and pricing to Central/South America increased $40/ton. US sellers

noted strong demand and difficulty filling orders due to full mill systems and low supply

after the removal of significant export capacity last year, leading at least one large

integrated to walk away from some customers.

Boxboard unchanged

In boxboard, prices remained flat across all grades with conditions largely unchanged.

URB demand remains strong with recent price increases largely implemented and full

mill systems amid a more disciplined supply environment. CRB was called mixed,

with some noting softer demand and others highlighting resilient operating levels. That

said, orders appear modest while contacts noted rising input costs with insufficient