Recent linerboard price hike in North America doesn’t go well with the key players

Recently, the prices for linerboard in North America have witnessed an upturn, driven by a need to counterbalance increasing costs amid inflation and to maintain margins. However, this development has caused tension among the top players and buyers. The six largest integrated producers in the region have announced price hikes for various types of linerboard. For instance, brown linerboard prices have risen by $50 to $60 per ton, while corrugating medium saw a comparatively higher increase of $80 per ton. White top linerboard prices also went up by $30 to $50 per ton. International Paper, a leading producer in the market, has followed suit by raising the prices of corrugated boxes and sheets by 10% and 12%, respectively.

Despite some claims of stagnant demand, certain large integrated companies have reported longer lead times for box shipments compared to two months ago, indicating a busy production schedule.

A representative from a major integrated firm highlighted an uptick in daily box shipments in June compared to May, with a year-over-year increase of about 2% to 4%. However, many market players are displeased by the price hikes rendering it unpragmatic as the supply is ample and market demand does not support such increases. Some buyers and sellers have even reported managing to secure lower prices this month compared to last, showcasing the mixed signals in the market.

Industry players were trying their best to stay afloat by managing to keep the prices higher despite languid demand dynamics in North American region recently. This new hike comes as a headwind for the players as some of the major names in the market quoted.

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Overall, the sentiment in the market is one of uncertainty, with some arguing that traditional supply and demand dynamics no longer apply as straightforwardly as before. The recent price increases are seen by some as necessary for the sustainability of mills, while others view them as potentially problematic for maintaining customer satisfaction.