Containerboard Better than Expected
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March containerboard and box numbers were a bit better than expected, Wilde reports. These numbers should put price hike discussions back on the table, he adds, noting that a late spring/early summer attempt is plausible. Until prices rise, he points out, input costs will squeeze margins. "We expect margin compression in Q2 and - quite possibly - in Q3. Reliable trade sources are reporting an uptick in export prices, as much as $20/ton, in the past one to two weeks. Also, we have heard reports that at least one major producer is preparing to announce a price hike in the wake of March's FBA report," Wilde says.
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