Sonoco announced restatement and implementation of the previously announced price increase for all grades of uncoated recycled paperboard (URB) products in the US and Canada, effective July 10, 2017.
According to the announcement, the low yield on the previously announced April 2017 URB price increase, along with the impact of rising raw material and other costs, makes it necessary to go back to the market to recover those costs.
Palace Stepps, division vice president of sales and marketing for Sonoco’s U.S. and Canada paper and adhesives, commented:
“This renewed price increase reflects the recent sharp rebound of recovered paper and other costs which we must recover so we can continue providing high-quality, value-adding products to our customers. After spiking in March, recovered paper prices temporarily declined. However, June recovered paper prices significantly increased, and we expect further cost increases in July as demand by domestic and export users remains strong.”
Sonoco is one of the largest producers of uncoated recycled paperboard in the US and Canada, producing more than one million tons annually from 11 mills.
Earlier Sonoco-Alcore S.a.r.l. announced an increase of prices for paper-based tubes and cores by up to 8.5%, depending on product category, effective from shipments beginning on April 15, 2017.
The company is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately USD 5.0 billion, it has 20,800 employees working in more than 300 facilities in 35 countries. Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 11 mills.