Citi notes that according to media reports, Packaging Corp. (PKG) has announced a $70/ton linerboard price increase and $90/ton medium price increase effective January 1, 2025. This follows the firm’s expectation for a 3rd price hike for 2024 announced around Thanksgiving, for implementation in Q1 2025. Notably, Packaging Corp. announced a price hike last year around this time. It’s not clear to Citi whether other major producers like Smurfit Westrock (SW) have followed the hike; Cascades (CADNF) announced a 3rd hike in September that ultimately was not followed by competitors. The firm expects Packaging Corp.’s hike will be followed, but awaits confirmation. Citi views the price hike announcement as positive for the Containerboard group, which is benefiting from consolidation, normalizing demand, and increased supply discipline.
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Read More on PKG:
- Jefferies says needs to see if peers match ‘surprising’ Packaging price increase
- Packaging Corp. price increases positive for group, says Truist
- Paper names moving higher in midday trading
- Packaging Corp. price target raised to $252 from $242 at Truist
- Packaging Corp. price target raised to $253 from $235 at Wells Fargo
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
