Jefferies says needs to see if peers match ‘surprising’ Packaging price increase

Jefferies analyst Philip Ng has confirmed Packaging Corp. (PKG) announced a $70/ton linerboard and $90/ton medium price increase for January 1st. While January is a seasonally slower period, Packaging Corp. is sold out and still dealing with elevated inflation. It remains to be seen if its peers match, but at a minimum this should firm up the box price increases that are being implemented and support the improved discipline with more rational players now in International Paper (IP) and Smurfit Westrock (SW) as well, Jefferies adds. Overall, the firm says the announcement is “a surprise,” since it’s during a seasonally slow period, so it’ll see if the other manufacturers match the increase with operating rates still in the low 90s, box shipments have been flat to up modestly, and prices are falling in Europe.