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Shipping Boxes Wholesale Blog

Corrugated Market Moving in September 2012

Posted August 21, 2012

The YELLOW SHEET (August 11, 2012) states an increase of 8-10% for September) 

We live in a Global Marketplace, and shrinking industrial base.  Manufacturers of paperboard and corrugated materials are remarkably few in numbers.  When I started in this business nearly 20-years ago, it was a dramatically different landscape that it is today.

International Paper Company has a 25% Market Share in Packaging, with over $ 10-Billion in market capitalization, and is the largest provider of containerboard.  Rock-Tenn is #2.  Acquisitions are a plenty for these 2-companies, including:  Jefferson-Smurfit, Stone Container, St. Joe Container, BOX USA, Weyerhaeuser , Temple-Inland

The Top-5 producers of Containerboard represent 74% of the total Market.

Consolidation reduces capacity, and firms up pricing, leaving consumers holding the bag.

US manufacturers of containerboard view their product as a ‘strategic global asset’.  As foreign markets continue to increase their manufacturing base, packaging will likely move with them, and costs to US consumers will continue to rise.

By: Don Esbjornson, President (Conpac Group, Inc.)

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