Paperboard Producers Hiking Prices

Over the past several days, several domestic paperboard producers have announced plans to increase the prices of their finished product. The companies cite sharply higher paper stock prices as the reason for the increase in their finished product prices.

In announcements released the second week of March, Rock-Tenn, Sonoco Products and Caraustar Industries all say that they are increasing prices for all grades of uncoated recycled paperboard.

For Rock-Tenn, the company says it will increase its prices for uncoated recycled paperboard by $60 per ton, effective with shipments starting April 12.

Sonoco Products also says that it will increase its prices by $60 per ton. It cites higher prices for raw material, especially old corrugated container (OCC), as the reason for the increase. In addition to the price increase for uncoated recycled board, Sonoco is increasing its paperboard industrial converted products by 5.5 percent. The price increases will take effect starting with shipments April 5.

Caraustar Industries also has announced plans to increase prices for both its coated and uncoated recycled paperboard, as well as its uncoated paperboard converted products.

Caraustar, headquartered in Atlanta, is increasing its prices by $60 per ton for all uncoated recycled paperboard grades and $45 per ton on its coated recycled paperboard grades. The price increases will go into effect with shipments starting April 5.

Caraustar also is increasing prices of tubes and cores and all other uncoated recycled paperboard converted products, starting April 5.

"Publication prices for Old Corrugated Containers have reached an average of $170 per ton in the middle and eastern United States, up $95 per ton since December publications,” says Greg Bartlett, VP sales and marketing for Caraustar’s Mill Group. “Unreliability of supply has forced us to reach out further with higher cost freight lanes and pay significant premiums over publication list prices to secure our recovered fiber needs."

" Fiber quality has also declined during this period, impacting our yield of our most important raw material.  Prices for all fiber grades have increased significantly. We understand the impact that this has on our customers; however, we cannot continue to absorb these costs.  We will be vigilant in monitoring this situation and keep our customers informed of changes and challenges in this volatile recovered fiber market," Bartlett adds.