Packaging Supply Chain Network Status

Price increase for paper-based products

Manufacturers on Lumi are reporting that North American containerboard mills have implemented yet another $50 per ton increase on linerboard and $60 on medium. This is the third price increase of this kind since November 2020. Visit the Lumi Corrugated Tracker for live updates.

Historic demand fueled by consumer spending and a shift to ecommerce home deliveries is behind the increase. Paper supply remains tight, there is a shortage in labor and other input costs, such as freight, continue to rise.

Price increases vary by manufacturer, but range between 7 to 12%. Please message the manufacturers you work with to understand how the price increase impacts your products.

In Q3 2021 the cost of paper-based products will increase, likely between 7-11%.

Four of North America's largest six integrated container board producers announced price increases in June. Increases will roll out from mid-July through September.

Materials impacted: Virgin corrugated medium, liner board, and SBS will rise $50-70/ton effective mid-July. Pricing for recycled fiber is also expected in increase for the second month in a row starting mid-July.

Products impacted: All paper products produced in the US, including boxes, paper collateral, paper mailers, publications, paper stickers and labels, paper tape, paper tubes, and paper void fill.

What's driving the increase? The latest industry wide increases on all fiber substrates are driven by increasing demand and raw material costs.

More to come: Delays in the supply chain have created even more strain, reducing material availability. This may may stretch lead times from material manufacturers to paper manufacturers, and the delays could trickle down to customers.