We are over halfway through 2021, and the United States markets are still struggling with coming away from the pandemic and the economy rebounding to normalcy in the supply chain. Nevertheless, as a Midwest and family–owned business, we have seen some of the largest producers in corrugated board markets in North America, including WestRock, PCA, International Paper, Georgia Pacific , and Cascades, announce increases.
Recently, it was announced by Fastmarkets RISI that these producers have announced the third round of domestic price increases for July – since levels first rose $50/ton in November, and then a combined $60/ton in March and April.
What is the cause for these increases? It is similar to what you are hearing from your other suppliers. The supply is not keeping up with demand from the customers. Many of these larger producers state that it takes them over 6 weeks to get the board they need to produce. In some circumstances, these companies are asking L&M to take on a portion of the workloads.