Sonoco Hikes Prices of Uncoated Recycled Paperboard

SEATTLE (Scrap Monster): Hartsville, S.C.-headquartered Sonoco announced that it has decided to implement price increases on various products sold in the U.S. and Canadian markets. The decision is aimed at recovering rising raw material costs.

According to company press release, a $50 per ton price increase will be implemented for all grades of uncoated recycled paperboard (URB) shipped in the U.S. and Canada, effective May 13^th, 2020. Sonoco’s price hike for URB comes after almost two years. It blamed dramatic inflation in input costs and recent significant increase in recycled fiber costs for the decision.

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Tim Davis, division vice president and general manager, Paper and Adhesives, U.S./Canada noted that the price hike is unavoidable, as it has been struggling to maintain margins on URB business due to higher operating costs of its paper machines.

Also, Sonoco will increase prices for all paperboard tubes and cores by a minimum of 8%, effective shipments dates May 13th, 2020. This is the first announced price change in nearly two years, said Doug Schwartz, Division Vice President and General Manager, Tubes and Cores, U.S. and Canada. Further, he noted that the hike is necessary in order to recover rising costs for recycled paperboard- the primary raw material used in production of tubes and cores.