C’board & Boxboard Update: Domestic C’board Up Another $50/ton; Boxboard Flat, SBS Price Increase Fails to Gain Traction

Research evidence excerpt

C’board & Boxboard Update: Domestic C’board Up Another $50/ton; Boxboard Flat, SBS Price Increase Fails to Gain Traction

ange apparently waiting to see the increase settle

before committing to higher prices. In recycled linerboard, 60-65% reported higher

pricing. Meanwhile, 70-80% of corrugating medium buyers and sellers reported higher

pricing, with 20% of those citing increases above the $50/ton linerboard increase as

IP is reportedly buying tons in the open market. In general, respondents cited lower

supply following the removal of ~10% of industry capacity last year, stronger demand

potentially influenced by the World Cup, and persistently high input costs as rationale

for the increase. Despite the increase, some RISI contacts suggested that box demand

remains challenged. As such, some boxmakers anticipate that customers could possibly

pushback again box price increases anticipated to begin in July and persist until

October, particularly if input cost pressures recede, although box demand tends to hit

seasonal peaks from September through November, serving as an offset.

On the export front, pricing to Southern Europe increased €30/MT, pricing to Mexico

increased $10/MT, and pricing to Central/South America increased $30/ton.

Boxboard unchanged; SBS price increase fails to gain traction

In boxboard, prices remained flat across all grades despite recently announced

increases effective June or July. CUK contacts reported stable conditions and healthy

beverage demand heading into the key selling season. That said, concerns surrounding

excess capacity in parts of the market, including CRB and SBS, persist. CRB conditions

have been weaker with steady to soft demand, lead times of four weeks, and supply

availability.