Despite continuing slow demand, the announced 12% price increase on corrugated boxes in North America is going through in the wake of the recent $55/ton containerboard price increase.

Most integrated and independent box producers took a strong stand on the price increase—the first in nearly a year—to pass through rapidly escalating costs. Overall box buyers seemed fairly understanding of the need to producers to get cost relief despite being hit from every direction by rising commodity prices. When the dust finally settles, most contacts expect box producers on average to achieve more than pass-through of the containerboard price increase. But as one analyst noted, there will be different degrees of success. “Some integrated producers will get much more than pass through, while others may barely get the board price increase.” (Source RISI)