Corrugated Box Prices Go Up. . .Again

Published: June 16, 2008

According to a report by packaging analyst Joshua Zaret of Longbow Research, corrugated packaging producers have begun to announce a new round of box price increases. This is a necessary step, says Zaret, to solidify and bring to the bottom line the recently announced containerboard price increase. The industry's resolve and need to realize higher price benefits in the face of escalating costs is reflected by the timing of the box increase (July 1), which is the same date as the scheduled containerboard hike.

According to Zaret’s report summary, International Paper told its customers in early June that it will raise box prices 11% effective July 1. And, the report continues, Smurfit-Stone stated at an investor conference also in early June that it had begun informing its clients of a box price hike on July 1.

Both these announcements followed an announcement in late May, by the top seven producers controlling a combined 70% of the containerboard market, that containerboard prices would rise. As of July 1, the containerboard initiative is for $55/ton, with the motivation being skyrocketing costs.

For the full text of the report or to contact Joshua Zaret, visit: www.longbowresearch.com.