Paperboard Producers Hiking Prices

Sonoco announced that it will raise prices on uncoated recycled paperboard by $50 per ton, effective March 31.

"Our industry is experiencing extraordinary increases in natural gas, fuel oil, and other petroleum based products. In particular, natural gas prices have continued to increase and have soared over the last few months. We are also experiencing significant increases in health care, pension and all insurance costs. In spite of our continuing cost reduction initiatives, we can no longer absorb these increases. It is our intent to revisit the energy portion of this increase when more normal rates return," said Bowen.

The decision to boost prices follows an announcement earlier this week from The Newark Group that it was boosting prices for its finished products.

The move comes as paper and paperboard companies continue to remain under pressure with low prices and reduced demand for many of their finished products.

Following the announcement by Sonoco and The Newark Group, Caraustar Industries, Inc. announced that it will raise prices on all clay coated paperboard grades by a minimum of $40 per ton and on all uncoated paperboard grades by $50 per ton. The increase will become effective with shipments on April 7, 2003.