Boxboard producers hiking prices.Caraustar Industries has announced plans to raise the price for all its grades of uncoated and coated recycled paperboard paperboard, material similiar in shape and composition to paper, but generally thicker, stronger, and more rigid. Paper machines, e.g., Fourdrinier machines, are used to make sheets of paperboard. by $50 per ton, effective with shipments March 19.
The increase is in addition to previously announced increases for recycled paperboard grades.
In calling for the increase, Michael Keough, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , says, "We have not witnessed this type of rapid escalation es·ca·late
v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates
To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf.
v.intr. of recovered fiber costs since the mid-'90s. We are seeing spot pricing significantly above published market price lists for certain recovered paper grades. The current recovered fiber market conditions have necessitated that we pass this cost increase through the supply chain."
Caraustar is not the only paperboard producer hiking prices.
Sonoco has announced it was increasing the prices for recycled paperboard by $50 per ton with shipments the middle of March. The increase follows an earlier announced $40-$50 per ton price increase in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. that went into effect March 1.
Representatives from Sonoco also pointed to the sharp jump in prices for recovered fiber as a reason for the increase in prices.
The Newark Group The Newark Group--also known as the Newark Supergroup--is an assemblage of Triassic sedimentary rocks which outcrop intermittently along the United States East Coast; the exposures extend from Massachusetts to North Carolina, with more still in Nova Scotia. also recently announced a price increase that was to go into effect in March.