Industry Reports

Deutsche Bank Reports Summaries

080131 Deutsche Bank Report - Containerboard Hike - Right Move, Wrong Number

Deutsche Bank - Equity Research

We recently published a research note suggesting that Smurfit-Stone was contacting customers about raising containerboard prices.  We speculated that the increase proposal would be for $40/ton on March 1.  Through numerous conversations with the trade we have confirmed that Smurfit is indeed telling customers about a March 1 price hike.  However, the proposed increase is $50/ton, not $40/ton.   Beyond Smurfit, we understand that International Paper and Temple- Inland are also talking with customers.  We have not been able to confirm the size of their proposed increases.