Uncoated Recycled Paperboard Prices have been Witnessing an Uptick

Augmenting demand and uptick in the prices for recycled fibre have been causing many paper packaging leaders to move the prices up for uncoated recycled paperboard, recently.
 
Ohio-based company Greif is set to increase the prices of its uncoated recycled paperboard by $50 to $70 per short ton. This change, effective in July, is in response to rising costs for raw materials, energy, labor, and transportation, coupled with increasing demand for these products. However, this price hike will not affect customers who have purchase agreements linked to price indexes like RISI’s Pulp and Paper Week.

These contracts adjust prices based on the index, which Greif believes does not currently reflect the swift rise in market costs, especially the doubled price of old corrugated cardboard (OCC) over the past year. Greif has expressed concerns that these indexes do not accurately reflect current market conditions, highlighting issues with delayed recognition of price increases and rising costs for old corrugated cardboard (OCC), which has more than doubled in price over the past year.

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Similarly, South Carolina-based Sonoco also announced a $70 increase per short ton for all grades of uncoated recycled paperboard, attributing the decision to rising input costs. Furthermore, Sonoco plans to increase prices for all converted paperboard products, including tubes, cores, cones, and protective packaging in Canada and the U.S. by at least 6%. This price adjustment will be effective with shipments starting in July, as stated by Mike Thompson, vice-president of sales and marketing for Sonoco’s North American Converted Paper Products Division.