Sonoco Hiking Paperboard Prices

Paperboard producer says market conditions warrant price hike.

Published February 12, 2004

 

Sonoco announced plans to raise the price on its uncoated recycled paperboard by $50 per ton effective March 1, 2004.

 

"Market conditions over the past few years have not allowed us to recover mounting energy, insurance, healthcare and pension costs, all of which remain high. In addition, we are now seeing increasing recovered paper costs, characterized by escalating spot price increases in all regions well in excess of published prices. While our productivity and cost-cutting initiatives have helped us maintain prices, we cannot continue to absorb this combination of cost pressures,” said Jim Bowen, Sonoco’s senior vice president, Global Paper Operations.

 

"Furthermore, increasing demand for recovered paper from China; signs of some general economic strengthening, including modest increases in demand for containerboard and increasing paper mill utilization rates; a normally low generation period for recovered paper; and recent bad weather, particularly in the northeast United States, are all historical indicators that we will likely be entering a cycle of increasing recovered paper costs," said Bowen.
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