Corrugated Prices Could be on the Rise Again

For the past six months, ERA has been observing the Corrugated market and announcements made by the large market producers regarding price increases.  What this means to your company is that the market has been more volatile than we have seen in the past several years, and prices are going up again.

It became official as of last Friday, April 21st, that the most recent $50 per ton of linerboard increase is being implemented, and customers can expect to experience the increase as early as their June shipments. 

That said, however, it is also expected that major box purchasers are going to push back on this increase, so we are taking a “wait and see” approach to how successful the increase will be for actual transactions.

The sellers will be pushing to increase transacted Corrugated container prices by 10-12%, but if your company has a robust agreement in place, your increase should be much smaller than that.

As mentioned in our last update, now is a good time to review contracts for corrugated purchasing and ensure your firm is protected appropriately from market-price fluctuations.

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