global oversupply. This follows a year in which demand conditions were so weak that U.S. containerboard producers shut about 10 percent of total domestic industry capacity. With the uncertain economic situation resulting from the Iran conflict, one integrated producer’s CEO nonethe- less recently told analysts that “supply is tight.” This fantasy is setting the table for the more recently announced price hike for June. Independent box makers are now faced with a Faustian bargain not of their making. There is absolutely no basis for a second round of price increases scheduled for June. We don’t know what the publication will do with the announcement, but I’m confi- dent pressure will build for RISI to recognize at least some of it. The integrated producers never adequately explain their logic for these price increase announcements. Is the rapid price movement related to cost pressures, ineffi- ciencies, or something else not easily defined? Analysts and investors may not care, but we independents do. It impacts our clients and their view of our industry. Perhaps some independent box makers don’t mind the constant containerboard price increases. They may see this as an opportunity for margin improvement. What we’ve seen historically, in a period of rapid containerboard price increases, is that the companies raising container- board prices might react very differently in the box market. Is the tight domestic containerboard market kept artificially CONTINUED ON PAGE 4
AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. REGION 42# Kraft liner 26# Semi-Chem. Medium $ 900.00-925. 00 $ 825. 00 -$850.00 U.S. Average CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton. 42# Kraft Liner 26# Semi-Chem Medium East $970.00 $960.00 West $1,015.00 $995.00 REGION
Price Environment (CONT’D FROM PAGE 1)
was down by $20/ton in February, only to suddenly rise by $40/ton in March and another $30/ton in April. As has been the case in the past, other producers acted in lock step to the original announcement. Does it make sense for prices to fall one month, only to rise in the following two months when there is ongoing weak demand that the large producers have acknowledged themselves? This price increase is being implemented in a market that can only be described as tepid, with operating rates at just 91 percent, containerboard inventories at 4.5 weeks (well above the historical average of 4.0) and substantial
DURABLE, RELIABLE SEPARATION FOR ABOVE OR BELOW THE ROOF
The AES AirShark ™
Ideal for paper, corrugated, non- wovens & more!
The perfect alternative to cyclone or screen separators
NO TARRIFS! Proudly made in Newton, NC
High air handling capacity – up to 64,000 CFM
(800) 572-9998 � SALES@AESALES.NET �
535 HAGEY ROAD SOUDERTON, PA 18964
WWW.AESALES.NET |
A RECYCLING EQUIPMENT INC COMPANY
May 18, 2026 3
www.boardconvertingnews.com
Made with FlippingBook. PDF to flipbook with ease