Smurfit-Stone seeks $50/ton price hike
CEO is optimistic that box demand will rebound
By Tom Stundza -- Purchasing, 2/6/2008 5:58:00 PM
Smurfit-Stone Container and International Paper have informed North American customers of a $50/ton containerboard price increase in March. In fact, Smurfit-Stone, is predicting stronger first-quarter results from higher market prices for paper-based packaging products despite a slowing U.S. economy.
RISI, the forest products subscription news service, says the price increase by the two largest North American containerboard producers is the first to be announced since a $40/ton price increase last August—and would apply to unbleached linerboard, medium and white top linerboard. Based on a $555 market price average in January for kraft liner, based on buyer surveys by Purchasingdata.com, the price hike would bring linerboard above $600/ton for the first time ever.
Meanwhile, end-of-year data from the Fibre Box Association shows that containerboard inventories were low at 2.26 million tons, the lowest yearend close since 1994. But Smurfit-Stone CEO Patrick J. Moore believes corrugated box shipments will grow in 2008 (after falling 1.4% industrywide in 2007) and that will allow for higher sales and average prices for containerboard.
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