BMO Capital Markets’ Mark Wilde: Containerboard Hike A ‘Done Deal’ According to Mark Wilde Ph.D., Paper & Packaging ana- lyst at BMO Capital Markets, the recent announcements by multiple integrateds of a $50/ton prince increase for containerboard is a “done deal,” with widespread reports of customers already ordering at the higher price. “This may be one of the least contentious price hikes in recent memory,” noted Wilde. “According to the head of an extremely well-run privately held integrated, container- board conditions are at their tightest in 25 years.” In boxboard, Sonoco, Greif and WestRock all an- nounced a $50/ton price hike for Uncoated Recycled Board (URB). Also in boxboard, WestRock announced a $50/ton Coated Unbleached Kraft Board (CUK) price hike. Fundamentals for CUK appear strong, as beverage mar- kets remain healthy, noted Wilde. Board Converting News has not yet changed the Aver- age Containerboard Prices in the chart on page 3 of this issue to reflect the increases mentioned above. As it says in the chart, “The average prices reported are tabulated from prices PAID by various sources throughout the Unit- ed States the week previous to issue.” When a majority of converter respondents surveyed report paying a high- er price and indicate what that price is, Board Converting News will adjust its pricing.
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2020
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
34.858 32.039
8.8
8.300 8.010
3.6
Industry Total
Year-to Date
September 2020
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
300.546 294.203
2.2
7.868 7.783
1.1
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2020 2019
2.8485 2.6312
8.3
24.5900 24.2028
1.6
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sep. Aug.
1.9511 1.9155
1.9
2.9 2.9
0.0
Shipping Days
Year
Month
Year-to-Date
2020 2019
21 20
191 189
SOURCE: Fibre Box Association
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November 2, 2020
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