February 23, 2021 - Several major North American producers of containerboard have recently increased linerboard prices by $50-$70/ton. Though these price increases are not yet reflected in Pulp & Paper (Fastmarkets RISI) — the industry publication that drives many packaging paper supply contracts — this recent round of increases is already being adopted by several integrated and independent corrugated manufacturers.
While corrugated increases are expected a couple times a year, this situation is slightly abnormal because the increase is being driven by tight supply and sustained increase in demand, which has not let up despite the holiday season coming to an end. These issues are compounded by the rise in input costs and unpredictable shortages in labor due to COVID-19.