The Paper Market 2011

Wednesday, April 20, 2011

The kraft linerboard market seems to be settling into a groove after a wild ride the previous two years.  Inventories have risen slightly, and total demand appears to be trending down slightly.  The market did have some consolidation early this year when Rock Tenn bought the assets of Smurfit Stone as they emerged from bankruptcy reorganization.  That consolidation may put some pressure on the market to continue to increase into unchartered territory as far as lineboard value.

Many manufacturing companies are holding their collective breath to see if the recovery will be long term, or just a flash in the pan created by replenishing the inventories that were trimmed over the last two years.  Hopefully the modest gain in the recovery carries on through this year.

Kepping watching this website for more news on the direction of the paper market and related box pricing expectations.