Smurfit-Stone Hikes Price for Containerboard to Latin America
Nov. 6, 2009 - Deutsche Bank (DB) reported that Smurfit-Stone Container has initiated a $50/ton price increase for containerboard that only applies to exports to Latin America, effective Dec. 1.
Mark Wilde, senior analyst at DB covering the Paper & Forest Products sector, believes the price hike is a sign of things to come for the domestic containerboard market. He points out that historically, it has been common for producers to first announce price moves in the export market before making domestic price announcements.
"We still view this as meaningful as Latin America accounts for a meaningful percentage of overseas containerboard exports," said Wilde.
"We would not be surprised if this was followed by a broader export hike and then a domestic price initiative within the next few months," he added.
SOURCE: Deutsche Bank