US containerboard prices under pressure as mills try to bring output into line with weaker box demand

摘要

US containerboard mills pulled back on production in October, causing inventories to rumble for a second consecutive month, according to the latest industry statistics. But even though market supply/demand moved toward better balance after the recent inventory buildup, pressure remains on containerboard prices approaching yearend because of weaker than expected corrugated box demand, new startup tonnage entering the market the last seven months, high mill production levels this summer, and plenty of paper supply. Even though prices overall remain relatively flat, there are reports of scattered $10-20/ton mainly spot price discounts, contacts said this week.