Mills seeking $40 price hike for kraft linerboard

White-top liner price hike of $60 flopped

By Tom Stundza -- Purchasing, 1/9/2008 10:24:00 AM

Caraustar Industries, Altivity Packaging and Rock-Tenn have announced a $40/ton price increase on all grades of uncoated recycled paperboard, effective with orders on January 28. The price increase was necessary to offset “historically high raw material and energy costs,” Carauster CEO Michael Keough says in a statement.

Also, KapStone Paper and Packaging today informed customers of a $40/ton price increase on unbleached kraft multiwall, converting, and bag and sack paper grades effective with orders shipped on or after February 15.

Meanwhile, subscription news service RISI says the attempt by producers to increase white top linerboard prices by $60/ton in December fizzled after Smurfit-Stone, the largest supplier, did not raise prices. Purchasing.com reported in November that the benchmark price of $730/ton last quarter was $50/ton higher than at the start of the year—and another $60 hike was being sought by several mills.

A RISI report in December suggested that the price hike was attempted because supply had tightened due to Green Bay Packaging’s decision to exit the market at year’s end and the Smurfit Stone sale of its Brewton, Ala., mill to Georgia-Pacific.