The major corrugated manufacturers have announced price increases of 10% to take
effect in mid-March. This is on top of the increase that we experienced back in
The market shift was confirmed in the February 17 “Yellow Sheet,” RISI Pulp and
Paper Week, which attributes the increase to a 4.8% jump in box demand and “increased
input costs.” There is also a tightening supply of linerboard, because several
mills were off-line following Hurricane Matthew, and a large Florida mill exploded
(literally) and went idle in January.
Linerboard mills have a history of floating price increases and then backing down.
However, our sources say that this increase is likely to stick. If those sources
are wrong, we will gladly admit our mistake, and if not, we will update our customers
as soon as we can confirm the effective date and the percentage increase amount.
What does this mean for our customers? If you have the storage space and the working
capital, it might be a good time to get your orders in before the increase happens.
If you’re ordering a new corrugated box or tray, you need to get art to us this
week, because the proof approvals and plate manufacturing take some time. If you’re
reordering an existing box or trays, you should get your orders in by March 3 to
be sure you’re under the wire.
We don’t yet have specific information on the date and extent of the increase, but
we will update our current corrugated customers as soon as we do.