C’board & Boxboard Update: Domestic C’board Flat; SBS Folding Carton & Cupstock Up; URB Flat; Another RISI Doozy

Research evidence excerpt

C’board & Boxboard Update: Domestic C’board Flat; SBS Folding Carton & Cupstock Up; URB Flat; Another RISI Doozy

said, IP’s newly converted Riverdale, AL mill is reportedly

already making lightweight linerboard and in the process of ramping.

Overall, 20-30% of linerboard buyers and sellers reported higher pricing vs. last month,

with these contacts not reporting higher prices last month, likely partly due to delayed

orders. Some sources are restricting orders to build inventory ahead of the busy

season and amid strong demand, while contacts largely anticipate little pushback to

the $100/ton net pricing achieved this year. Boxmakers are reportedly out with price

increases with varying degrees of confidence as to their implementation. One contact

reported difficulty passing on the first linerboard increase to box prices while a small

integrated company is delaying the June linerboard increase, potentially due to backlash

from customers. Others suggested linerboard prices could be pressured should pass-

through fail to notably materialize by September, despite the seasonal box demand

pickup that begins at that time. Meanwhile, cost inflation continues to erode pricing

gains, with reports of freight costs doubling last week and higher manufacturing costs

related to the Iran conflict. Contacts were also cautious on rapid OCC inflation (up $29/

ton on average ytd) while OCC generation as of early July was cited as softer despite

the recent uptick in box business.

On the export front, pricing to Southern Europe increased €20/MT, pricing to Mexico

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

Another RISI curveball - SBS folding carton and cupstock increase; URB price

increase no-go; boxboard unchanged elsewhere