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Uncoated Free Sheet Pricing Up Slightly, Containerboard Flat
Aug. 23, 2011 - Uncoated Free Sheet. Repro bond estimated prices rose $5-10/ton to $1,085-1,135/ton. So far, producers have implemented $35-40/ton out of the $60/ton June 1 price hike. While demand remains weak, higher prices are aided by supply cuts, lower inventories and favorable trade flows. In offset papers, estimated prices fell $10/ton to $935-955/ton. With the August decline, producers have been able to implement only $15 of a $40/ton April 1 price hike. Containerboard. Prospects for an autumn containerboard hike attempt have faded. Key issues are economic jitters and overhang from the International Paper / Temple-Inland bid. While pressure on box prices appears to have eased, the market remains highly competitive. PPW reports 42-lb linerboard in Northeast and Midwest around 540-550/ton, net of discounts. Medium is about $30-40/ton lower. As per PPW, linerboard estimated prices are $635-645/ton. Export realizations are solid — $500-520/ton FAS range, aided by weak US$. Temple-Inland has temporarily idled its 895,000 tpy Bogalusa, Louisiana linerboard mill due to an effluent issue. Kraft Paper. Kraft paper market remains tight. Producers implemented the full $60/ton price hike on extensible sack kraft. August estimated prices rose to $1,150-1,170/ton, +10.5% year/year. Key drivers are strong export demand and limited supply. The big news is that RockTenn will cease production of kraft paper at its Hodge, Louisiana mill, removing about 115,000 tpy of kraft paper from the market. KapStone and Delta Natural have announced $50/ton price hike on “natural” multiwall, effective mid-September. Source: Deutsche Bank - Mark Wilde (Paper & Packaging : Dr. Paper's Pulse on Pricing) |