May 2013 Newsletter

National News
Containerboard Price Increase – What does that mean to you?
Increase announcements were made in April for the price of 42 lb. Kraft liner board. This is the “bell weather” grade of paper used in the process of making corrugated paper board. A sheet of 200 Mullen Test Corrugated Paper Board by law, must be comprised of two 42 lb. liners (the combined weight of the facings must be 84 pounds). Industry publications “PPI Pulp & Paper Week” and “Board Converting News” have both reflected a $50/ton increase. How this increase will affect the price of a box will depend on the amount of corrugated board with relation to the run and set up times involved in producing the box. For example a small box run in small quantity will see a small effect on its price as opposed to a large box run in truck load quantities. As we have in the past with paper price changes (up or down), we will look at the effect of the material cost change on each box to accurately assess the effect of the material cost change.

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