International Paper Announces $80-a-Ton Containerboard Price Increase Effective Sept. 1

Shares of International Paper rose on Tuesday after the company announced an $80-per-ton price increase for containerboard, effective Sept. 1.

According to a note from Truist analyst Michael Roxland, the increase applies to containerboard products and follows a similar price increase announced by rival Packaging Corp. International Paper did not comment on the report.

Roxland said the price increase is being driven by higher input costs, including freight, recycled fibre, chemicals and purchased electricity, as well as strong demand and tight market supply.

Containerboard is used to manufacture corrugated packaging and consists of linerboard and corrugated medium. Based on current market prices of $1,045 per ton for linerboard and $935 per ton for corrugated medium, the announced increase represents price gains of approximately 7.7% and 8.6%, respectively.

The price increase is scheduled to take effect on Sept. 1.