Boxes on the Move has been servicing the GTA and Durham region for 10 years and we are proud to say that over that time, we have not had to increase our prices.
However, over the last year, the North American Containerboard Industry has announced yet another increase of $50 per ton on linerboard, medium and white top.
As a result, Manufacturers will increase their prices by a minimum of 10% on all converted box orders and 12% on all sheet orders.
Boxes on the Move and other carton retailers will have to increase their prices in order to remain profitable. So in order for us to service our customers with affordable boxes, we are adding only 10 cents to our small (1.5 Cube) and medium (2.0 Cube) sized boxes for the time being. Still the best price out there.
Price increase notification letter from Atlantic Packaging.
Be Prepared as Corrugated Prices Could Increase Again
“The second increase in 6 months
Kapstone, the fifth largest producer in North America, was the first to announce the increase on February 13. Other large market producers followed suit over the next several days, and those producers that have announced represent about 84 percent of capacity for containerboard in North America. This includes International Paper, the largest producer.
It is possible that the market will push back, similar to what happened in Q4 2016, with only $40 of the announced increase of $50 per ton actually being implemented. Additional factors that could lead to this increase being unsuccessful are the fact that linerboard is currently at an all-time high, and historically, some producers have “broken from the pack” and discounted open market transactions in order to try to increase market share.
But, if the current round of increases does go through, the earliest effective date likely will be June 1, 2017. If the increase is successful, the producers are indicating that the increase could be 10 percent on boxes and 12 percent on sheets.”
“International Paper, the largest North American containerboard producer, has begun informing US customers of a $50/ton containerboard price increase for Oct. 1, a couple converters told RISI.
The increase would be the first on linerboard and medium in the US market since the last $50/ton price hike about three and a half years ago in the spring of 2013.”
What to Know About the Corrugated Price Increase
HOW CAN YOU SOFTEN THE BLOW OF A CORRUGATED PRICE INCREASE?
“Note: This article originally appeared in May 2013, and we are bringing it back with updated information for our readers due to recent corrugated price increases.
In the corrugated industry, it is unheard of to instill a price increase that isn’t tied to a material cost increase. Corrugated prices are directly tied to the paper index which is based on the transaction price from the paper manufacturers to their clients. A sheet plant or corrugator can see increases from their suppliers on starch, strapping, diesel, energy, and health insurance and must absorb these added costs in an already competitive and lean market.”