Packaging Corp of America Announces $140-Per-Ton Containerboard Price Increase Effective September 1

Packaging Corp of America (PCA) has announced a $140-per-ton increase in North American containerboard prices effective September 1, marking the third price increase announced in 2025, according to market participants who confirmed the move to Fastmarkets on July 24.

If fully implemented, the latest increase would bring total linerboard price increases to $240 per ton within seven months. Earlier increases of $40 per ton, $30 per ton and $50 per ton were introduced in March, April and June, respectively. Those followed a $20-per-ton decline in February, resulting in a net increase of $100 per ton so far this year based on Fastmarkets' assessment.

Market participants attributed the latest increase to tightening supply conditions in North America. Packaging Corp of America executives described the market as "tight" during the company's earnings call on July 23.

According to the report, supply constraints have been driven by the retirement of approximately 3.9 million tons of US containerboard capacity, representing about 10% of capacity, between February 2025 and March 2026. Additional disruption has come from the shutdown of International Paper's Pine Hill, Alabama, containerboard mill, which sources said could remain offline for one to two months. Another major integrated producer was also reported to be experiencing supply delays following a significant mill shutdown in 2025.

Export market participants expressed concerns over limited availability of US kraft linerboard for at least the next two months, with one buyer reporting that a producer was quoting prices for October orders during the second week of July.

PCA also said it has been increasing corrugated box prices following the containerboard price increases. During the July 23 earnings call, Chief Financial Officer Kent A. Pflederer said most of the first price increase would be reflected in the third quarter, while the majority of the second increase is expected to be realised in the fourth quarter.