Market: Packaging Paper & Board
Posted June 14, 2018
Sonoco will increase prices for its paper-based tubes and cores by a minimum of 6% in the United States and Canada, effective with shipments beginning July 16, 2018, as the company says in the press release received by Lesprom Network.
“The price increase is necessary due to ongoing increases in uncoated recycled paperboard (URB), the largest input cost for tubes and cores. URB demand remains strong and the marketplace is extremely tight, with operating rates pushing 100%,” said Doug Schwartz, division vice president of sales and marketing. “In addition, the rising cost of transportation remains a headwind due to lack of capacity linked to recently imposed driver regulations. As a result, Sonoco will be implementing a new policy of selling certain large diameter tubes that have less space utilization yields at F.O.B. from our operations.”
Sonoco is one of the largest producers of paperboard tubes and cores in North America, which are used to serve the paper, textile, plastic film, tape, and specialty industries, including construction.