Sonoco implements price increase

Packaging producer Sonoco, based in Hartsville, South Carolina, has announced it is implementing a price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning May 30.

The company is increasing its URB pricing by $50 per ton and says the change reflects continued tight market conditions and inflationary pressures on manufacturing costs, including energy, freight, chemicals, packaging materials and labor.

"Unfortunately, the conditions that challenged us in 2021 have not dissipated in 2022," says Tim Davis, division vice president and general manager, paper – U.S. and Canada for Sonoco. "We continue to be challenged by strong demand, increasing backlogs and inflating costs."

Sonoco recently released its first-quarter financial results for 2022, noting record sales compared with 2021. The company's net sales were $1.77 billion compared with $1.35 billion in Q1 2021. At the time, Sonoco President and CEO Howard Coker said the company's first-quarter earnings benefited from strong price/cost recover across most of its business, adding he was "very please with their better-than-expected first-quarter results."

Coker also noted that supply chain issues have prompted Sonoco to delay the conversion of its Hartsville paper machined from corrugated medium to URB to the third quarter of this year, saying the delay is expected to result in less downtime and "should provide more favorable results in our Industrial Paper Packaging segment in the second quarter."