Linerboard Price Trend and Forecast

Linerboard Regional Price Overview

Get the latest insights on price movement and trend analysis of Linerboard in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Linerboard Price Trend for the Q3 of 2024

The prices of Linerboard witnessed varying trends throughout the third quarter of 2024. The prices showed regional variations, but the trajectory remained similar for most global markets. The markets started on a positive note continuing the correcting trend from the previous quarter. The surge in the prices was driven by improved demand from the packaging industry. Stronger demand for containerboard has led to longer mill backlogs in some cases slightly longer than a month. Apart from this, the rising labour and operating costs had led to squeezed profit margins.
 

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To maintain profits and manage operating costs, companies raised the prices of the commodity.  Cascades, the sixth largest producer of containerboard, in North America announced a price increase of around 40 per ton increase for linerboard effective from October 7, 2024. This is the third price hike by the company in 2024. The company had experienced unexpected downtime at its new Bear Island mill in Virginia, affecting the supply in the region. The company has cited higher operating costs to justify the hike. In a general trend, when one company implements price hikes, others follow suit. Overall, the prices of linerboard fluctuated with an upward inclination influenced by increased demand and rising operation costs.

Analyst Insight

According to Procurement Resource, the prices of liner board are expected to oscillate in the coming quarter influenced by regional variations in market attributes and other driving global macroeconomic indicators.
 

Linerboard Price Trend for the Q2 of 2024

In the North American market, linerboard prices rose slightly amidst a mixed-demand landscape. Some major plant closures strained the domestic supply structure for raw materials of linerboard. The price increase was attributed to rising feedstock prices and disruptions in the supply chain. Primarily, high production costs have been driving the prices.

Downstream demands have also been supporting the market positively. Furthermore, the startup of new recycled containerboard capacity has altered the market dynamics. Environmental concerns regarding collecting fiber and tree products to make paper have also affected the industry. On a positive note, the packaging and shipping industries have been supporting the linerboard markets for a long time. With rapidly evolving shopping and freight systems, the linerboard demands are likely to increase even further.

Analyst Insight

According to Procurement Resource, Linerboard prices are likely to increase further in the coming months based on rising downstream demands.
 

Linerboard Price Trend for the Q1 of 2024

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During the first quarter of 2024, the linerboard market experienced a complex pricing environment in North America. Initially, attempts to implement price hikes were met with mixed success, as many market participants did not fully recognize the increases. This led major producers like Cascades, Georgia-Pacific, International Paper, Pratt Industries, and WestRock to announce a second round of price hikes to secure the desired pricing levels. Despite initial skepticism, these hikes began to take effect, with analysts noting that producers were gradually able to implement a significant portion of their intended increases, driven by elevated input costs.

However, the process was followed by additional complexities. The traditional pricing model faced criticism for its relevance, as it primarily reflects a shrinking open market. Some industry executives expressed frustration with the index’s ability to accurately drive industry pricing, leading to discussions about exploring alternative pricing strategies.

Despite these challenges, the linerboard market began to show signs of price recovery, particularly towards the end of Q1 2024. The market participants observed that the dynamics within the market were starting to improve, although there remained caution in declaring a full recovery. The industry was also dealing with what some referred to as a cardboard box recession, with dips in demand that had prompted box price cuts in the past. However, as the quarter progressed, there were early indicators of a potential rebound in demand, which could support further price stabilization or increases in the coming periods.

Analyst Insight

According to Procurement Resource, the price of Linerboard is expected to trail the trajectory set by its downstream procurement rates and changes in the production costs of the commodity.
 

Linerboard Price Trend for the Second Half of 2023

The US experienced a notable decline in linerboard prices, particularly in the last months of 2023, after experiencing a stable trajectory during most of the H2 of 2023. This decrease was particularly pronounced in the Northeast and Los Angeles regions, with reports indicating diminished corrugated box demand.

The factors contributing to this decline included downstream industries seeking lower prices for bulk purchases and traders implementing price reductions for long-term agreements. The linerboard prices witnessed a downturn in the domestic US market and in the overseas industries, well indicative of the export figures of the US.

While some industry insiders expressed concerns about a slow start in the initial months of 2023 only, others remained cautiously optimistic, increasing their production units, citing improved demand leading to the abrupt incline in the inventory levels in the later months of the year. Despite ongoing challenges such as high production costs and consumer price inflation, executives anticipate a gradual recovery in demand.

Analyst Insight

According to Procurement Resource, the price trend of Linerboard is expected to be based on the limited outlook of the downstream industries and the reduction in consumer interest in this sector.

Procurement Resource provides latest prices of Linerboard. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.