Record Market Levels Driving Corrugated Prices Higher & Higher

With the linerboard market already at historic highs, producers have announced another increase, the third since the beginning of 2010.  The implementation of the announced $60/Ton jump would represent a total increase of $170/Ton since January, bringing levels to an unprecedented high of $750/Ton!  With the latest announcement, box plants will be pushing yet another corrugated box price increase, bringing the total change since the beginning of the year to an increase of more than 30%!

Market conditions continue to support the sellers:  Inventories are low (3.2 weeks), domestic and export demand are on the rise, containerboard mills are running at 95% of capacity, and a seasonal uptick in the fall all point to continued upward pressure on box prices.

With Provident Spend Management’s experience and proven RightSourcing program, we are uniquely positioned to ensure through a Provident-led strategic sourcing process that your corrugated pricing levels reflect the best possible position, given the current market conditions. We also have specific tools and methodology to ensure that your costs are effectively controlled going forward, making certain that market related increases are managed correctly.  Additionally, with Provident’s engineering and supply chain expertise, our Right Pack program can reduce the amount of containerboard used ensuring you safely move the maximum amount of volume with as little containerboard as possible. Right Pack doesn’t stop with material savings.  It harmonizes your package with transportation and storage needs making sure you maximize your product’s volume with each storage and transportation leg.