PaperboardPkg inside

HEARD IN CANADA
Paper Industry Must Reinvent Itself
By Mark Arzoumanian
Editor in Chief

IP Leads Off
Second Board Price
Increase Attempt

Canadian paper in- dustry management and unions realize that they’re in the middle of a storm,
says Jean-Claude Savard, presi-
dent, Savard Consultants. He
has more than 30 years experi-
ence in consulting on quality and
performance improvement. So
it’s critical that they work with
their partners to develop a new
business model. He reviewed the challenges
the country’s paper and paperboard packag-
ing industry face today and offered ways to
overcome them at a Paper Packaging Canada
seminar in Toronto last week.

Transacted Containerboard Prices

Average transacted price levels are tabulated by obtaining paid prices from independent converters purchasing linerboard and medium. All prices are intended as a reference standard only. Transactions may be concluded at any time at any price agreed upon by seller and purchaser. These are delivered prices for week ended previous Tuesday. Price ranges listed are per short ton.

Northeast 42#Fourd.KraftLinerboard$520–530 $530–540 $530–540 $540–550 $545–555
Kraft Linerboard Upcharges (Nationwide):

26#: $50/ton 33#: $30/ton

31#: HP* $30/ton 35# HP: $25/ton 57# HP: $20/ton Recycled:

35#: HP Recycled: $30/ton

East Central Southeast/
South Central
North
Central
West

26# .009 Semichemical $455–465 $460–470 $480-490 $470-480 $500-510 Medium
Semichemical Medium Upcharges (Nationwide):

23# SM:** $20/ton 33# HP: $25/ton 40# SM: $10/ton

*HP: High Performance **SM: Semichemical Medium

International Paper (IP), Memphis, is telling its customers that it plans to raise containerboard prices by $60 per ton, effective with shipments on April 1. If it succeeds, this increase would be the second one of 2010, after a $50 to $70 per ton increase was successful in late January. At press time no other producers had joined with IP in this latest effort.

“We give this second containerboard hike a good chance of success,” writes Mark Wilde, paper industry analyst for Deutsche Bank, New York City, in an emailed report. “IP is the clear industry leader, with about 30 percent of the domestic market.”

At last week’s Credit Suisse Global Paper and Packaging Conference, Rock Tenn Co. said that it has not taken the containerboard downtime it had planned for the first calendar quarter based on stronger-than-expected order flow. IP stated that it has needed to take mill downtime in the first quarter due to the inability to obtain sufficient wood fiber.

“As a result of the growing evidence that global containerboard markets are extremely tight, plus the continued increases in the price of OCC, we believe the market is underestimating the chances of a successful spring increase in the U.S.,” write Chip Dillon, paper industry analyst, Credit Suisse, New York City, in an emailed report.